Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Master Budget - Essay Example

Comments (0) Cite this document
The Master Budget is prepared by combining individual annual budgets that are prepared earlier. It is a set of projected or planned financial statements. It is a plan of activities expressed in monetary terms of the assets, equities, revenues and costs that will be involved in carrying out the plans…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Master Budget
Read TextPreview

Extract of sample "Master Budget"

Download file to see previous pages The first and foremost step in developing the master budget is the sales forecast in terms of quantities and values of products. After considering the opening and closing inventory levels, the production quantities are determined which is known as the production budget. The production budget is further divided into the direct materials purchases and usage, direct labor and factory overhead budgets. Likewise the indirect material and labor, other factory overheads, cost of manufacturing, cost of goods sold, ending inventory of finished goods, selling, administrative and operating expenses are budgeted. Finally, the cash budget is prepared in which cash receipts and disbursements are determined. The process ends with the completion of the Pro Forma Income Statement, Pro Forma Statement of Cash flows and Pro Forma Balance Sheet.
Zero based budgeting is a method of budgeting where all expenditures are justified and every department function is reviewed comprehensively rather than only gauging the increases. The reasons for adopting a zero based budget are that it results in efficient allocation of resources, it helps detecting inflating budgets, cost effective ways to improve operations are determined, it increases the staff motivation and provides an initiative for decision making, it is highly useful for departments where the output is not identifiable, it identifies outsourcing opportunities, removes wastage and outdated operations, communication and coordination within the organization becomes more efficient, and the task of cost centers and their relationship to the overall goals are identified.
Question 2
Usually a budget also contains non-financial information. This information is used to explain the financial information, qualify it and divide the financial information into sub information.
Types of Non-Financial Information
Information like the quality of the resources, quantity of the resource required, procedure for calculation and the mechanism is generally included. In some cases the workload on the employees and the human resources required to do the job is often included. This information is used injunction with the financial details and helps to clarify the budget.
Calculation of Financial Information using Non-Financial Information
Non-Financial information is used commonly to calculate the financial information. For example the quality of a certain product can be divided into 4 classes and each class is allocated a weightage. The price of the product will be multiplied with the weighted average of the product to give the actual total price. Another example can be the quantity of wood required to manufacture 1000 units of chairs. This will be calculated by first finding the number of planks of wood a truck of tree gives. Then the quality of wood will be quantified to manufacture one unit of chair and finally the total cost will be found out. Thus non-financial information is usually necessary to calculate financial information.
Advantages of Including Non-Financial Information in Budgets
The benefit of using non-financial information in the budgets is that it makes the employees aware of the goals and objectives expected. These goals are set by using the non-financial inf ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Master Budget Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Master Budget Essay Example | Topics and Well Written Essays - 1000 Words)
“Master Budget Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...? Budgeting Introduction A budget is a comprehensive financial plan used to determine the source of revenues and expenditures (Brookson, 2000). A budget is one of the most important financial tools used by corporates, individuals and the government to determine sources of revenues and how the available revenue may be spent without wastage (Brookson, 2000). The common types of budget are performance budget, cash budget and budget fore cast. Performance budget is based on anticipated revenues and expenses that are anticipated to be incurred in the future (Millett, 2011). Cash budget predicts how the available revenues will be utilized to accomplish a project (Millett, 2011). This type of budget helps corporate to have an insight on whether...
5 Pages(1250 words)Assignment


...Institute Budgets: Disadvantages and Alternatives 5/28 Table of Contents Table of Contents 2 Introduction 2 Arguments against Budgets: 3 Alternatives to Budgeting 4 Conclusion 5 References 6 Introduction Explained in simplest of terms, budget is the plan for a specific period of the organization in quantitative terms. It serves as a blueprint for the plan of action to be followed by the company in the upcoming period (Horngren, Datar, and Foster, 2006). Research on effectiveness of budget has pointed out that 80% of companies are displeased with the planning and budgeting processes, and they consume almost 20% of all the management time. Attempts to re-engineer the processes were not successful either (Neely, Bourne, & Adams, 2003...
4 Pages(1000 words)Essay

Master questions

...1) Describe accomplishments within your career that are indicators of your ability to do well in graduate study. During my career, I have had work experiences that will benefit me in my future graduate studies. These times in my life greatly assisted my thinking about a wide range of issues. My pharmaceutical background gave me a good foundation on which to build my knowledge about the specific topics in the graduate program. When I was still in undergraduate study, I also worked in a highly-respected pharmaceutical company. I was only a trainee, so my main responsibilities were to just observe and assist wherever I could. More specifically, part of my job requirements was to assist the head doctor in the pharmacy with all... Describe...
2 Pages(500 words)Assignment

Budget Simulation

...BUDGET SIMULATION Introduction Government spending entails all government investments, consumption, and excludes payments transfers made by any state. State’s acquisition of services and products with the aim of usage in direct satisfaction of individuals or other collective needs of community members is referred as State final consumption expenditures. The government acquires these goods and services with the aim of creating future benefits. Such benefits include research findings, investments, education, among others. This spending is grouped into two: mandatory and discretionary. Mandatory spending incorporate all authorized spending by any State’s legislation (parliament) while discretionary spending includes all others government...
2 Pages(500 words)Assignment

Spin master

... Spin Master The success of Spin master emanates from their willingness to use innovations, research on the marketable toys on the world, and to take reasonable risks. Indeed, their decision to transform the pantyhosed sprouting head to an urban adventurer image espoused by Roots Canada Ltd was a major breakthrough as they received 500, 000 orders from USA. Subsequently, the decision to move the production to Harary’s factory with 20 workers working 24 hours was significant in meeting the demand of the toys. The decision to carry out grassroots marketing campaign by the students was equally significant as it improved sales. The decision to take up the air-pressured airplane and developing it to Sky Shark was a noble decision...
1 Pages(250 words)Case Study

Budget Requirements

...Budget Requirements Budget Proposal As a new Non-Governmental Organization (NGO) we are committed to improving the lives of impoverished children living under poor conditions in Jacksonville Community. In this community, there are a lot of children who are still facing a lot of challenges because of their backgrounds. Because of their low economic status, they do not have enough resources to acquire quality education. For this reason, our organization will carefully select children from 50 families within this community. However, for a family to qualify for sponsorship, it must be needy and meet all the requirements. The selected families will be offered free training, education and mentorship programs until they qualify to leave...
5 Pages(1250 words)Coursework

Training Budget

...Training budget Affiliation Introduction Every company or organization usually desires to achieve the best by hiring well and qualified personnel so that they can maximize on their outputs from the investment inputs. Thus there is need to develop a program within them that will help identify or improve the productivity of their workers (Waagen, 2000). As a result various organizations have a developed a training program that will ensure they get the best individuals that will increase efficiency. However the training initiative will make the company to incur an extra cost and thus do require a good budgeting plan as to how to implement the process. Preparation for the training The training will start by various preparations so...
4 Pages(1000 words)Essay


...Budget due: The major elements in the fire department’s budget are in infrastructure and equipment improvement and expansion of fire service operations. These elements are catered for in the whole budget that amounts to approximately to $69 million in the infrastructure, equipment improvement and expansion (Ballam, 2013). Nevertheless, for the previous fiscal year, the anticipated plan has on average revenues totaling $2.5million. The infrastructure improvement budget suggests expenses totaling to a tune of around $1.7 million, with an additional $0.5 Million in the special entertaining fund and carryover for about $0.35 million. The budget cuts across machinery $27 million, fire engines $32 million, fire education $10 million, servicing...
2 Pages(500 words)Assignment

The Bottled Water Company Comprehensive Master Budget

...The Bottled Water Company Comprehensive Master Budget al Affiliation) Executive Summary Introducing a new product will have a tremendous boost on the company’s net income as evident from the attached proposed budget. We anticipate a good number of sales from our new product, given the uniqueness of the product from the rest of the beverages available in the market today. We expect a steady number of sales all round the year and subsequently, a steady cash flow from our supplies. We expect our production to be at par with the amount of sales, to avoid excessive supply that may negatively affect our income statement. We have extensively covered the cost of the materials used both directly and indirectly in the production of the new product...
6 Pages(1500 words)Essay


Hard and Soft Earmarks Hard and Soft Earmarks Difference between Hard and Soft Earmarks Earmarks de an amount of money set aside for an organization or a regional group or sometimes for an identified pet project. Members of the congress are responsible for steering such amounts of money to different projects. Hard earmarks denote a written legislation, which serves as a legal obligation of designating money to certain organizations or project. The congress must approve the earmarked funds before their transfer to the selected project. For a long time, there has been an ensuing criticism surrounding hard earmarks. Therefore, members of the congress have resulted to suing soft earmarks. A soft earmark denotes a courteous request, w...
2 Pages(500 words)Essay

Identifying Development Needs in Budget Management

...Identifying Development Needs Identifying The Needs Analysis Identifying Development Needs 2 The process of Needs Analysis concerning this particular proposal is to find out the skills gap that is in the delegates who attend this training program. It also includes the methods that are to be followed in the development process, and the reasons behind choosing the methods etc. The actual necessity was originated from the lack of certain budget management skills in managers and to manage future budgets also. This training program was opted by Best Training, and Kim Summers was the one chosen by the group to deliver the training, but the all the training would be given in Bourne Mouth Training Center...
7 Pages(1750 words)Scholarship Essay

The Chancellor of the Exchequers Budget Statement Claim

...THE BUSINESS ENVIRONMENT The Significant parameters, interalias, on which a indication of the Economic Growth of a country can be assessed are as follows: 1. Rise in GDP Index. 2. Reduction of unemployment Levels. 3. Consumer Expenditure. 4. Increase in Investments. 5. Decrease in Retail Price Index. 6. Decrease in Producer Price Index. 7. Balance of Payment. 8. Balance of Trade In the present context of the Chancellor of the Exchequer’s Budget Statement Claim that Great Britain is entering “the tenth year consecutive year of uninterrupted economic growth” I propose to deal with the subject along the abovementioned lines: Rise in GDP Index: The GDP is a significant index of the UK economic health and provides for a measure...
9 Pages(2250 words)Assignment

The Development and Future of the UK Budget Hotel Sector in Financial Crises

...Working The Development and Future of the UK Budget Hotel Sector in Financial Crises I. Aim of the Research This research aims to find out howthe budget hotel sector in the UK developed. It also aims to determine the future of the sector in the midst of the current financial crisis. II. Objectives of the Research The following are the objectives of the research: 1. To gather information such as primary and secondary materials about how the UK budget hotel sector developed, 2. To conduct an analysis based on certain economic theories about the future of UK budget hotel. III. Importance of the Research and How it Fits in to the Body of Knowledge This research entitled “The Development and Future of the UK Budget Hotel Sector...
7 Pages(1750 words)Research Proposal

The Challenge of International Budget Hotel in China Market

...Chapter Introduction Before budget hotels have gained ground, travelers in China stay in the country’s zhaodaisuo— a term that means ‘guesthouse’. But the zhaodaisuos have always left a negative impression to travelers because of issues in hygiene and service. Nevertheless, beds from the zhaodaisuos are always in demand. Most of the time, travelers are left with no choice but to check-in in these places due to China’s growing popularity as a tourist destination as well as other traveling activities caused by the boom in the country’s economy. This problem posed opportunities to international hoteliers and domestic operators who saw profits in putting up a wave of low-cost and clean hotels as response to the high demand for affordable yet...
58 Pages(14500 words)Dissertation

A proposal of master degree

...Master’s Degree Proposal Credit card theft, fraud and the banks that are liable August RESEARCH PROPOSAL Research Paper Topic: Credit card theft, fraud and the banks that are liable in the US. Does the scope of the law work for all interested stakeholders? Abstract Credit card fraud as the result of phishing emails and payments fraud appears to have become more rampant as more financial institutes are publishing actual data on what the fraud is costing them1. This paper will look at the different types of credit card fraud and then address two specific questions: 1. What is the extent of the liability banks are held responsible for in cases of credit card fraud in the United States and 2. How are banks implementing policy changes...
7 Pages(1750 words)Essay

Master of Counseling Program

...Personal ment - Master of Counseling Program Introduction There are a number of incidences in my life that I can say have led me to the choosingof this particular career path. These happenings helped me realize what I wanted to do with my life and helped me know the best way to do it too. One major experience I can attribute to helping me make this decision occurred on one cold morning at the UC Irvine Gavin Herbert Eye Institute where I happened to be accompanying a man on his medical follow-up visit with his ophthalmologist to assist with interpretation. The time was 7:09am and the wall clock’s second hand ticked fastidiously as if racing with the “tippy-tap” sound of the receptionist’s keyboard as she typed away on her computer...
7 Pages(1750 words)Personal Statement

From Hallie to Master Harold: The Transformation

... Instruction: Task: From Hallie to Master Harold: The Transformation. Literary analyses are important in enabling us understand the different elements that make up works of literature. This means that by evaluating these works of literature, we are able to draw certain conclusions that help in understanding the major themes advanced by the authors. Additionally, these analyses can be used to compare and contrast similarities and differences that exist between the society presented in the work of literature and the current society that we live in. This makes it possible for us to ensure that the subject focused on in the work of art can be used as a point of reference for implementing or referencing the ideas gotten from the work...
10 Pages(2500 words)Assignment

A Five-Year Budget Proposal for Macomb County

...A Five-Year Budget Proposal for Macomb County II Fire Department ID A Five-Year Budget Proposal for Macomb County II Fire Department Macomb County II Fire Department based the development of their budget for strategic reasons. This explains why the budget developed is to cover a period of Five years. The five-year budget is developed and broken down into smaller pieces that are then used during operations to cover the financial control aspect of the county. The county bases on its mission that aims at educating the people of Macomb, protecting and delivering to them services excellent services through progressive training, well organized and cohesive team (Macomb Township, n.d). The county fire department covers a number of aspects within...
6 Pages(1500 words)Assignment

Purpose Master of Industrial Engineering

... ment of Purpose Master of Industrial Engineering I believe that industrial engineer can organize, develop, and operate the industrial systems for any good or service we may see around us and for the high-quality products that nourish the world. The competence of industrial engineers help in serving and improving many corporate. It is also deemed a sign of urbanization, evolution, and prosperity. I am impressed with the field that is racing with the time in the product development and the production operations, and characterized by its possibility to apply it in several institutions and corporates. Therefore, this embeds in me the credence that I can sail in this world and reach new dimensions. Also, it distinguishes individuals...
6 Pages(1500 words)Assignment

NASA Budget Cuts: Bad for America

... of the English of the Teacher 27 April NASA Budget Cuts - Bad for America In the recent times, a significant section of theAmerican population has come to think that investing resources and money in the space program does not need to be a government priority. Such views do pose many problems for NASA. The thing is that the political class acts a lot in consonance with what the masses think. Thereby the proliferation of the belief that money should not be spent on space programs could lead to significant cuts in the funding of NASA. Going by the current funding of NASA, the organization is already not in a position to finance many of its cherished projects. For instance the much famous mission to Mars is already in a danger...
10 Pages(2500 words)Case Study
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 Master Budget for FREE!

Contact Us