Budgets

Budgets

1. Zero Base

   • It is a document that reflects how much and where the resources of a company are allocated, with the aim of achieving more profitability and efficiency by reallocating expense items.

2. Production

   • It consists of a table that shows an estimate of the number of units that must be produced by a company in order to satisfy sales demand and ending inventory in a given period of time.

3. Warehouse

   • These are the costs associated with the com These are the costs associated with the company's logistics function, and can be classified according to their purpose as distribution, warehousing

4. Distribution area

   • The importance of the distribution budget lies in the fact that it includes the operations carried out from the time the product is manufactured until it reaches the customer, and therefore includes all the expenses generated by the product, such as salespeople's expenses, sales office expenses, advertising, etc.

5. Purchase

   • The purchasing budget is a type of budget that limits the amount of raw materials a company purchases. This budget helps to keep track of the sales made and to prevent the company from having to stop production due to a lack of raw materials.

6. Sales

   • Sales budgets should contain the units expected to be sold, the sales price and the period to which it corresponds.