Definition A budget of direct labor cost expected to be incurred in the coming period is called direct labor budget.…
Material is an integral part of the production cost. In a manufacturing business, material constitutes 70% – 80% of the…
Definition A production budget is a plan to manufacture a set number of units for the coming period. It is…
Definition A sales budget is an estimation of sales or revenue for the coming budget period of a business. It…
Fixed Budget A fixed budget is a budget that is prepared at a single level of activity at the start…
Budgeting is used by management for various purposes. One of the purposes of budgeting is to motivate the management and…
Bottom-up budgeting is an approach of budgeting in which the functional or departmental managers prepare their budgets and submit them…
Top-down budgeting (also known as imposed budgeting) is the process by which top management prepares budgets for the business and…
Budgeting is the process of making quantitative plans and targets for the business. Generally, budgets are prepared annually at the…