The master budget summarizes the financial projections of all of a company's departmental budgets.
- forecast profit and loss statement
- forecast cash flow statement
- forecast balance sheet
The budgeting process can be divided into two parts
- operational budgeting
- financial budgeting
The operational budget consists of
- sales budget
- production budget
- ending inventory budget
- direct materials budget
- manufacturing overhead expense budget
- direct labor budget
- marketing and sales expense budget
- administrative expense budget
- forecast profit and loss statement
The financial budget consists of
- investment budget
- cash budget
- forecast balance sheet