Operating budget—sales budget, production budget, purchasing budget, expense budget, human resources budget, etc.

Special decision-making budget - mainly investment and financing decision-making budget

Sub-budget (auxiliary budget)

Financial budget - capital budget, projected balance sheet, projected income statement

Short-term budget - the budget period is within 1 year (including 1 year)

Long-term budget – budget for more than 1 year

Responsible for corporate budget management

Examine and approve budget management systems and policies, review the annual budget draft or draft budget or budget adjustment draft and submit it to the board of directors for approval, monitor and assess the unit's budget implementation and report to the board of directors

Specifically responsible for the tracking and management of corporate budgets, supervising the implementation of budgets, analyzing the differences and reasons between budgets and actual implementation, and proposing opinions and suggestions for improving management.

Specifically responsible for budget preparation, execution, analysis and other work related to the business of this department

Based on the actual economic activities and their budgets in the historical period, the budget is formed by adjusting the economic activity items and amounts in the historical period.

Advantages - small preparation workload

Disadvantages - it can lead to the inability to effectively control ineffective expenditures, rationalize unnecessary expenditures, and cause waste.

Starting from zero, analyzing the rationality of economic activities during the budget period based on actual needs, and forming a budget through comprehensive balancing

Scope of application - applicable to all budgets, especially budgets that occur infrequently or budgets with large changes in the basis of budget preparation

advantage

shortcoming

Refers to taking a certain business volume (referring to elastic variables related to budget items such as enterprise output, sales volume, operating volume, etc.) level within the budget period as a fixed basis, without considering possible changes.

Advantages - the preparation is relatively simple and easy for managers to understand

Disadvantages - poor comparability

On the basis of analyzing the quantitative dependence between business volume and budget items, determine the resources consumed by different business volumes and their corresponding budget items (y=a bx)

Scope of application - applicable to all budgets related to business volume in the preparation of comprehensive budgets

advantage

shortcoming

Use a fixed accounting period (such as the calendar year) as the budget period

Advantages - the budget period corresponds to the accounting period, and comparison of actual numbers and budget numbers is conducive to analysis and evaluation of budget implementation.

Disadvantages - lack of long-term planning, leading to short-term behavior

According to the established budget preparation cycle and rolling frequency, the original budget plan will be adjusted and supplemented, rolled from period to period, and continuously promoted.

Classification

advantage

shortcoming

It is the starting point for preparing the entire budget.

Cash income = current sales revenue x current period sales percentage of current period sales revenue of previous period

Balance of accounts receivable at the end of the period = sales revenue for the current period x sales recovery percentage at the end of the period

The only budget that only involves physical quantity indicators and does not involve value quantity indicators.

Prepared based on sales budget

Budgeted production volume = Budgeted sales volume Estimated ending finished goods inventory – Estimated ending finished goods inventory

Prepared based on production budget

Estimated material purchase quantity = production requirements Ending stock – Beginning stock

Amount of accounts payable = expected material purchase volume x material unit price x future payment ratio

Prepared based on production budget

Total labor cost = total labor hours x hourly labor cost, where total labor hours = estimated output x unit product labor hours

Variable manufacturing overhead - prepared based on production budget

Weekly manufacturing overhead - needs to be estimated item by item, usually not based on the production budget and has nothing to do with the current period's output

Summary of sales, production, direct materials, direct labor, and manufacturing overhead budgets that do not directly involve cash receipts and payments

Sales Expenses - The budget is prepared based on the sales budget

Management expense budget - generally based on past actual expenditures and adjusted according to foreseeable changes during the budget period

Prepared based on operating budget and special decision-making budget (not involving production budget and product cost budget)

Available cash = opening cash amount cash receipts

Cash balance = available cash - cash disbursements Closing cash balance = cash balance Ruijin financing - cash utilization

If short-term borrowing interest is involved (borrowing or repayment at the end of the current period will not affect the interest of the current period); It is stipulated that interest should be paid at the end of each period: interest = (loan balance at the end of the previous period, new loan amount at the beginning of the current period) × interest rate × loan period

Preparation basis: various operating budgets, special decision-making budgets and capital budgets

The amount of the "income tax expense" item is a budget estimate and is not calculated based on the "total profit" multiplied by the income tax rate.

Prepare by combining various operating budgets, special decision-making budgets, capital budgets and expected income statements during the planning period

The end of preparing a comprehensive budget