Page 153 - P1 Integrated Workbook STUDENT 2018

Budgeting

2.2 The budgeting process

Step 1 Sales Start with the principal
budget budget factor, usually

sales

Step 2 Production budget

Step 3 Raw Labour Factory
material overhead

Cost of goods
sold budget

Selling and
Administration
Step 4 Distribution expenses
expenses budget
budget

Step 5 Master Budgeted profit
budget or loss statement

Capital
Step 6 Cash budget expenditure
budget

Step 7 SOFP
budget

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