Acc 220 Appendix C

Associate Level 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 |An estimate of expected sales for the budget period. |Is used to compare actual sales volume to revenue for a specific|
| | |period. The sales budget serves as a basis for other business |
| | |budget as well as for identifying needed process improvements |
| | |and to determine price increases, and inventory. |
|Production budget |A projection of the units that must be produced to meet |Is a financial plan used by manufacturers to estimate the cost |
| |anticipated sales. |of manufacturer a product. |
|Direct materials budget |An estimate of the quantity and cost of direct materials to be |Analyzes the amount of raw materials that a manufacturing |
| |purchased. |company needs to purchase to meet the required level of |
|