9 important Procedure for Budget-Preparation in management

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.

(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.

(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.