Skip main navigation

The Master Budget

.

To help you see the “big picture” keep in mind that the 10 schedules in the master budget are designed to answer 10 questions ….

  1. How much sales revenue will we earn?
  2. How much cash will we collect from customers?
  3. How much raw material will we need to purchase?
  4. How much manufacturing costs will we incur?
  5. How much cash will we pay to our suppliers and our direct labourers, and how much cash will we pay for MOH resources?
  6. What is the total cost that will be transferred from finished goods inventory to cost of good sold?
  7. How much selling and administrative expense will we incur and how much cash will we pay related to those expenses?
  8. How much money will we borrow from or repay to lenders – including interest?
  9. How much operating income will we earn?
  10. What will our balance sheet look like at the end of the budget period?

Over to you

Start thinking about what the master budget would look like for your place of work. Remember to think about the big picture.

This article is from the free online

Accounting for Today’s Dynamic World

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now