Acc220 Appc

Axia College Material

Appendix C

Budgets Matrix

Directions: Using the matrix, define each of the budgets listed and briefly describe its uses.

|Budget |Definition |Describe its uses |

|Sales budget |A sales budget is the first report prepared that shows a |It will show how many units that will have to be produced in |

| |detailed report of the expected sales for a given time period |order for the master budget to be prepared. You have to sell to |

| | |make money |

|Production budget |The amount of units that need to be produced in order to meet |It is used to show how much it will cost for research, |

| |inventory and sales needs |development, and cost of new products |

|Direct materials budget |Shows the quantity and cost of direct materials to be purchased |To make sure that there is enough funds to cover the materials |

| | |that it will take to make the product so they do not come out |

| | |short or over |

|Direct labor budget...