Welcome to week 3

We hope you are enjoying the course so far, if you have any questions about the content so far, please make sure to leave them in the comment section.

This week we will be focusing on budgeting – we will explain the concept of budgeting, its importance, and other issues around budget preparation.

We will also discuss creating a master budget that includes all the lower-level budgets such as sales budget, production budget, raw material purchase budget, direct labour budget, sales and admin budget, manufacturing overhead budget, and cash budget.

This week’s learning objectives:

• Understand why organizations prepare budget and the processes used to create budgets
• Prepare a sales budget, including a schedule of expected cash collections
• Prepare a production budget
• Prepare a direct materials budget, including a schedule of expected cash disbursements for materials purchases Prepare a direct labour budget, a MOH budget, and a selling & admin expenses budget
• Prepare a cash budget
• Prepare a budgeted balance sheet
• Budgets in an international environment

Over to you

What are learning objective are you most excited to explore and why?