Detail Study of Sales Budget, Production Budget, Purchase Budget, Labour Budget, Master Budget and Functional Budgets
☑ Sales, Production, Purchase, Labour, Functional and Master Budgets
☑ Presenting and Preparation of Budget in Excel from Start to end
☑ Excel worksheet for Practicing own questions of budget
☑ Solving questions based upon knowledge acquired
This is the Best Designed course for Students to learn Budget and Budgetary Controls and Concepts.
In these Sessions, I have put my 6+ Years of experience in Budget and Budgeting and created the best possible course for your understanding.
These sessions are designed in the following manner:
Firstly, you shall learn about the Concepts on a colorful Blackboard (Please see preview)
Secondly, you shall be shown Excel Visualization charts for the same concept to make that concept more clearer for you.
Lastly, You shall be tested for those concepts through practical assignments, quiz or questions.
The budget represents the objectives of any organization that is based on the implication of forecast and related to planned activities.
A budget is neither an estimate nor a forecast because estimation is a predetermination of future events, may be based on a simple guess or any scientific principles.
Similarly, a forecast may be an anticipation of events during a specified period of time. A forecast may be for a specific activity of the company. We normally forecast likely events such as sales, production, or any other activity of the organization.
On the other hand, budget relates to planned policy and program of the organization under planed conditions. It represents the action according to a situation which may or may not take place.
Budgeting represents the formation of the budget with the help and coordination of all or the various departments of the firm.
Budgetary control is a tool for the management to allocate responsibility and authority in planning for future and to develop a basis of measurement to evaluate the efficiency of operations.
A budget is a plan of the policy to be pursued during a defined time period. All the actions are based on planning of budget because budget is prepared after studying all the related activities of the company. Budget gives a communication ground to the top management with the staff of the firm who are implementing the policies of the top management.
Budgetary control helps in coordinating the economic trends, financial position, policies, plans, and actions of an organization.
Budgetary control also helps the management to ensure and control the plan and activities of the organization. Budgetary control makes it possible by continuous comparison of actual performance with that of the budgets.
Budgets are the individual objectives of a department whereas budgeting may be said to be the act of building budgets. Budgetary Control embraces all this and in addition, includes the science of planning the budgets themselves and utilization of such budget to effect an overall management tool f or the business planning and control.
…Rowland and William
Types of Budgets
Budgets can be categorized in various ways. Let us go through the types of budgets in detail.
It relates to any function of the firm such as sales, production, cash, etc. Following budgets are prepared in functional budgets:
- Sales Budget
- Production Budget
- Material Budget
- Manufacturing Budget
- Administrative Cost Budget
- Plant Utilization Budget
- Capital Expenditure Budget
- Research and Development Cost Budget
- Cash Budget
Master Budget or Summarized Budget or Finalized Profit plan
This budget is very useful for the top management of the company because it covers all the information in a summarized manner.
It is a rigid budget and is drawn on the assumption that there will be no change in the budget level.
It is also called a sliding scale budget. It is useful in:
- the new organizations where it is difficult to foresee,
- the firms where activity level changes due to seasonal nature or change in demand,
- the industries based on change of fashion,
- the units which keep on introducing new products, and
- the firms which are engaged in ship-building business.
Sales and Production Budget
Direct Material Consumption Budget
Direct Material Purchase (Quantity) Budget
Direct Material Purchase Value Budget
Direct Labour Budget Hours
Direct Labour Hour Budget Value
Factory Overhead Budget
Sales and Administration Overhead Budget
Direct Material Usage Budget – Part 1
Direct Material Usage Budget – Part 2
Direct Material Purchase Budget
Direct Labour Cost Budget
Factory Overhead Budget – Part 1 – General Calculator Case
Factory Overhead Budget – Part 2 – Scientific Calculator
Sales and Admin Overhead Budget
Preparation of Master Budget – Part 1
Preparation of Master Budget – Part 2