Financial Analysis in Cost Accounting: Budgets and Revenue

School: Southern New Hampshire University - Course: ACC 311 - Subject: Accounting

ACC 311 Cost Accounting Southern New Hampshire University

FINAL PROJECT2 7-2 Final Project II: Financial Analysis ACC 311 Cost Accounting To: Project Managers, and members of the board From: Cherokee Wescovich Date: December 11, 2022 Subject: Accounting Report Every company should be aware of the budgets that are available and not available. They are a required knowledge in order for managers and those alike to make decisions that would benefit the company. Companies have multiple budgets that they should review, like a sales budget.Sales budgets are important in helping businesses estimate their overall performance and how much revenue they may make from a certain product [ CITATION Ind21 \l 1033 ]. Purchasing budgets are another of the budgets that companies use to help determine the availabilities to the company. The employee who would best know what they are looking at when reviewing a purchasing budget would be the company's purchasing manager, who would use the purchasing budget to review the inventory that the company must purchase during each budgeting period [ CITATION Acc221 \l 1033 ], in order to keep the company from going into the red in the terms of profits and making sure that the company does not make unnecessary purchases. An additional set of budgets that are a requirement for companies are the selling and administrative expense budgets, which are a combination of the budgets of all the non- manufacturing departments. This would include the sales, indirect material, indirect labor, salaries of the supervisors, lighting, heat, and insurance cost of the factory [ CITATION Ras21 \l 1033 ]. Something that a company needs to consider when they are wanting to move forward in