Master Budgets

It is the process of planning and

management of the long-term investments of

the company.

• Cash budget

• Capital Budget

• Sales budget

• Profitability budget

Budget showing the forecast of future entries

and cash outflows (money in cash) of a company, to

a certain period of time.

• Sales budget

• Capital budget

• Cash budget

• Profiability budget

It's a scheduled estimate

systematically from the

operating conditions and the

results to be obtained by a

organism in a period

determined.

• Fiancial Statement

• Cash flow

• Budget

It is the cost of the materials used in the manufacture of the tangible goods or services produced.

In the case of manufacturing companies, the materials, physically converted into part of the finished product

• Indirect costs

• Direct costs

This is the cost of the personnel directly linked to production (salary), i.e. the personnel involved in the transformation of the material into the finished product, the employees who work directly with the product.

• direct labor cost

• Indirect labor cost

• cost centre

These are the costs of personnel who are not directly involved with the transformation of the raw material into a finished product, but whose responsibilities are to support, supervise or direct.

• Direct labor

• Indirect labor

• Cost centre

Administrative cost are:

• Cost of interest the company pays on loans.

• These are the costs of personnel who are not directly involved with the transformation of the raw material into a finished product, but whose responsibilities are to support, supervise or direct

• These are the costs of materials necessary for production, but which are not part of the finished product, or if they are, their cost is insignificant in relation to the total cost.

• These are the costs incurred in the management, planning, control or operations of the company.

What is the definition of the master budget?

• It is a process of making of the budget that allocates funds according to the efficiency and need for to achieve the objectives of the organization instead of considering the budget history of years previous.

• It is basically an estimate of a company's future costs, expenses and revenues for planning its operations.

• is an economic estimate that helps to forecast and project the future of the company and to establish the administrative process to be followed in order to obtain the expected profits

what are the elements that integrate a budget?

• assets, liabilities, equity

• income, cost and expenses

• materials, purchases, raw material inventories

It's an advantage of budgets

• Your data, when estimated, will be subject to the judgment or experience of those who determined it

• Coordinate and link the activities of the organization

• Coordinate the different cost centers in order to ensure that the company runs in a comprehensive manner

• They facilitate administrative control