Accounting › Section T · Budgeting › Topic T.2
Operating budgets
The operating budgets turn one sales forecast into a full plan for production, purchasing, staffing and spending. Follow one manufacturer from its sales budget to its budgeted operating income and you will see how every schedule feeds the next.
In this topic
- One forecast, a chain of schedules
- The sales budget
- The production budget
- Worked example: Brackley's production budget
- The direct materials budget
- Worked example: materials purchases
- The direct labour budget
- The manufacturing overhead budget
- The selling and administrative budget
- Worked example: budgeted cost of goods sold
- Common mistakes to avoid
- Key takeaways
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