Nobody downloaded yet

Business plan: Product Budgeting Project - Essay Example

Comments (0) Cite this document
Product Budgeting Project Introduction This business plan highlights various aspects of product budgeting of an industrial product named as “Highnoon”. “Highnoon” is a product being manufactured and sold by the organization under progress; its future growth and estimates are analyzed regarding the budgeting aspects…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.9% of users find it useful
Business plan: Product Budgeting Project
Read TextPreview

Extract of sample
"Business plan: Product Budgeting Project"

Download file to see previous pages Some of the assumptions taken to complete the product budgeting practice are stipulated below. Assumptions 1. The product is made up of the two raw materials named Beflow and Affton. 2. Two kinds of labour are used in the production process of the product, which are skilled and non-skilled labour. 3. For capital expenditure, since this is the first year of operations, therefore, the organization has planned to invest only in the furniture and equipments. The requirement for having a factory is fulfilled by arranging a facility on rent. 4. Selling price of the product is set as ?130 and ?140 for the first and last six months of the first year. 5. It is assumed that prices of raw materials and labour costs will remain steady and stable throughout the year. 6. Overheads are estimated to be 75% of the direct labour cost. 7. Closing stock is assumed to be around at least 15% of the next month’s sales volume. 8. 65% of the sales are expected to be received in the month of sales whereas the remainder amount is assumed to be received in the next month of sales. 9. ...
Discussion Unit Cost Given the assumptions and market prices of the raw materials and labour costs, the unit cost of the product “Highnoon” is estimated at ?121.75. This cost includes ?20.25 in terms of direct material, ?58 in terms of direct labour and ?43.5 in terms of overheads. Budgets There are six kinds of budget prepared for the purpose of this product budgeting such as Capital Expenditure Budget, Sales Budget, Purchases Budget, Production Budget, Direct Labour Budget and, lastly, Cash Budget, all of these are included in the analysis covering 12 months of first year of operations of the business. Capital expenditure budget amounts to ?45,000 in total; ?20,000 are to be invested in the first six months, whereas the remaining amount is intended to be paid next six months. Sales budget is allocated in such a manner that 450 units are expected to be sold out in the first quarter, 500 units in the next two quarters and 550 units in the last quarter amounting total sales of around ?871,500 for the whole year. As far as the production budget is concerned, around 6,000 units are expected to be sold out whereas around 6,083 units are assumed to be produced. By multiplying the production units with unit costs provides the total production cost of the period amounts to ?740,605. Closing inventory is also valued at the unit cost amounting to ?10,105. From the purchases budget, it can be viewed that the quantity of Beflow and Affton is expected to remain around 912 kg and 608 kg respectively with their corresponding rates of ?55 and ?120. The cumulative amount of total purchases of both the raw materials is expected to be ?128,707. For direct labour budget, it is expected that the skilled labour would consume around ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Business plan: Product Budgeting Project Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Business plan: Product Budgeting Project Essay Example | Topics and Well Written Essays - 3500 words. Retrieved from
(Business Plan: Product Budgeting Project Essay Example | Topics and Well Written Essays - 3500 Words)
Business Plan: Product Budgeting Project Essay Example | Topics and Well Written Essays - 3500 Words.
“Business Plan: Product Budgeting Project Essay Example | Topics and Well Written Essays - 3500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Project Finance, Accounting and Control
The layout of a distinctive annual budget plan comprises a comprehensive line-by-line and department-by-department estimations of the income and expenses which are most likely to arise during organisational operations. Notably, the variables causing income and/or expenses are strongly influenced by the accuracy and the efficacy in executing the budgeting process (Siciliano, 2003).
8 Pages(2000 words)Essay
A budget is always prepared on the basis of money for a future period of time. A budget is made for a full year - divided into months. Budgets are made for a specific amount of activity. For instance, if the limiting factor is capacity then the budget will be made based on this factor; likewise, if the factor of limitation is the demand in the market, the budget will be made on sales.
4 Pages(1000 words)Essay
Business Project Management
Technical initially, they turn strategic when time frame, involved labour, costs and also their association with the fulfilment of organizational objectives increase substantially. Though success dimensions of project are subjective and open to interpretation, yet the bottom line remains stuck to the fundamental tenets of cost, time and quality.
12 Pages(3000 words)Essay
Project Plan: Integrating Product Quality
Quite impressively also, the scope target was fairly reached. In terms of time, a lot was even achieved the project was delivered within a timeframe that is generally less than the projected time allocated to various components of the projects. Events within the project such as procurement and installation were generally achieved earlier than planned.
3 Pages(750 words)Essay
Innovative Business / Product Plan
structure 11 6.0 Operation and production plan 12 6.1 Production facilities 12 6.2 Operating Capital Requirements 12 6.3 IT requirements 13 6.4 Legislation and IPR considerations 13 7.0 Financial Plan 13 7.1 Sources of finance 13 7.2 Costs of production 13 7.3 Breakeven analysis 14 7.5 Forecasted cash flow as well profit and loss for the first 12 months 14 8.0 References 15 1.0 Introduction In this report, there will be an elaborate business plan that the newly established Maline Company will adopt for the realization of its company goals.
9 Pages(2250 words)Assignment
The Payback Period as a Tool in Capital Budgeting Decisions
The importance of capital budgeting in a company cannot be overstated. Chatfield and Dalbor (2004) stressed that capital budgeting decisions are very much crucial in maintaining the firm's long-run financial health. Thus, it should be taken as seriously as possible.
5 Pages(1250 words)Essay
A Business Plan
This plan will communicate about the demand in the market, estimated growth and profits, required financials and the benefits to the investor. The business plan should give the information about the business, demand in the market, investment requirements, financial
3 Pages(750 words)Essay
Marketing Plan (Project about product)
The major expenses for our business will be salaries for the software developers. We are aiming to hire 2 programmers, each with an average annual salary for $55,000. Besides the usual rent and operational costs, we shall incur the costs of promoting the software and
2 Pages(500 words)Essay
Wynn Las Vegas Business Plan
It is also aimed at fostering accountability and optimal utilization of the available resources. Direction setting is the process of formulating quantifiable priorities and goals with clear financial targets and solid
2 Pages(500 words)Essay
Project management for business
The report has concentrated upon project planning, project monitoring and control. The report has evaluated the outstanding vision and well-knitted
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Business plan: Product Budgeting Project for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us