Preparation of Master Budget for National Australia Bank

Managerial Accounting
1/21/2019
National Australian Bank

Accounting 1
Executive summary
The purpose of the report is to prepare a report on budgeted incomes statement for the year 2019
based on the company that has been selected for the analysis. The company that has been
selected for the report is National Australia Bank which is one of the ASX listed company in the
Australian market. The report findings show the explanation about the different elements of the
Master budget which are present in the accounting. Further, it includes the comparison about the
approach which includes top-down and the bottom-up approach related to the budget process
with the analyses that which approach is more appropriate for the National Australia Bank.
Further, this report includes the findings related to the data of the 2018 and 2018 budgeted
income statement.

Accounting 2
Contents
Introduction......................................................................................................................................4
Background of Company.............................................................................................................4
Elements of Master budget..............................................................................................................5
Sales budget.................................................................................................................................5
Production budget........................................................................................................................6
Capital expenditure budgets........................................................................................................6
Direct materials budget................................................................................................................7
Direct labour budget....................................................................................................................7
Manufacturing overhead budget..................................................................................................7
Selling and administrative budget...............................................................................................8
Cash budget.................................................................................................................................8
Budgeted financial statements.....................................................................................................8
Comparison of a top-down and bottom-up approach to the budget process...................................9
Top-down approach.....................................................................................................................9
Bottom-up approach..................................................................................................................10
Suggestion for the approach to the company.................................................................................11
The budgeted income statement for 2019......................................................................................12
Opinion on Changes..................................................................................................................13
Conclusion.....................................................................................................................................15

Accounting 3
References......................................................................................................................................16
Appendix........................................................................................................................................18