9 important Procedure for Budget-Preparation in management

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9 important Procedure for Budget-Preparation in management are as followes:

(1) Determine the period of time to be used as a basis for the production budget.

(2) Provide properly balanced inventories to meet the sales needs.

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(3) Determine when the goods should be produced.

(4) Determine the manufacturing operations.

(5) Establish standards of production performance for use in measuring production efficiency.

(6) Develop a programme of materials, labour, service and equipment requirements.

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(7) Establish production-cost standards.

(8) Translate the production programme into standard estimated cost to effect financial coordination.

(9) Use the production budget for the purpose of the cost control.

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