Master Budget | Performance Management and Control

Running head: PERFORMANCE MANAGEMENT AND CONTROL
Performance Management and Control
Name of the Student
Name of the University
Author Note:

1
PERFORMANCE MANAGEMENT AND CONTROL
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Sale forecast and Master Budget............................................................................................3
Production Budget..................................................................................................................4
Direct Material Budget...........................................................................................................4
Direct Labour Budget.............................................................................................................7
Manufacturing Overhead.......................................................................................................7
Selling and Administration Budget........................................................................................9
Budgeted Income Statement................................................................................................10
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

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PERFORMANCE MANAGEMENT AND CONTROL
Introduction
Master budget is a budget that is prepared based in the historical data of the existing
company, or an estimation or forecast for new companies (Bužinskienė). The vital component
of a master budget is the accounting data that provides information of the past, which enables
to build a budget that will incorporate attainable goals. The components of the master budget
are sales budget, production budget, direct material budget, direct labour budget,
manufacturing overhead budget, selling and administration budget, finished goods budget,
cash budget, budgeted income statement and budgeted balance sheet.
Discussion
The most common name that comes to our mouth is molasses as most of us are fond
of sweet. Cookies are something that remains favorite for all irrespective of the age. Hence
molasses cookies would be something that will cater the needs and will be demanded, if the
price are kept competitive with other cookies in the industry. Apart from being healthy, it will
be the ultimate choice for the children as it prevents obesity.

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PERFORMANCE MANAGEMENT AND CONTROL
Sale forecast and Master Budget
Creating a sales budget is vital to improve the cash flow of the company. By creating
a sales budget, the company incorporates, attainable objective that includes required or
estimated profit, and the total cost that the company estimates to incur. The sales budget of
the company is as provided below:
Revenue
Budget
Selling
Price
Unit
Sold
Total
Revenue
Sal
es
$
50
80,00
0
$
40,00,000
From the revenue budget, the total revenue has been estimated, which is calculated
using the selling price per unit and the total unit expected to be sold.