How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Faleel Your Own Question

Faleel, Financial Advisor
Category: Finance
Satisfied Customers: 1
Experience:  MBA Finance
Type Your Finance Question Here...
Faleel is online now
A new question is answered every 9 seconds

Budget Definition Describe its uses Sales budget Production

Resolved Question:

Budget     Definition     Describe its uses
Sales budget
Production budget
Direct materials budget
Direct labor budget
Manufacturing overhead budget
Selling and administrative expense budget
Budgeted income statement
Cash budget
Submitted: 6 years ago.
Category: Finance
Expert:  Faleel replied 6 years ago.

Sales Budget

A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of production. An accurate sales budget is the key to the entire budgeting in some way. If the sales budget is sloppily done then the rest of the budgeting process is largely a waste of time.


Uses of sales Budget

The sales budget will help determine how many units will have to be produced. Thus, the production budget is prepared after the sales budget. These budgets are then combined to cash budget. In essence the sales budget triggers a chain reaction that leads to the development of the other budgets. In a sales budget budgeted sales are multiplied by the unit sales price.


Production Budget

A detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs.


Uses of Production Budget

The production budget is used to determine the budgets for manufacturing costs including the direct materials budget, the direct labor budget, and the manufacturing overhead budget.


Direct Material Budget

Materials budget is detailed plan that shows the raw materials that must be purchased to fulfill the production requirements and to provide for adequate inventories.


Uses of Direct Material Budget

This will ensure that the right materials are on hand, in the right quantities, and at the right time to support the production budget.

Direct Labor Budget

Direct labor Budget is schedule of direct labor requirements computed to ensure that sufficient labor time is available to meet the budgeted production needs.

Uses of Direct Labor

By knowing in advance how much labor will be needed throughout the budget year, the company can develop plans to adjust the labor force as situation requires.

Manufacturing Overhead Budget

The manufacturing overhead budget is schedules for all costs of production other than direct materials and direct labor.

Uses of Manufacturing Overhead Budget

This budget helps to identify that all the overheads including cash and noncash expenses.

Selling and administrative expense budget

The selling and administrative expense budget is lists of budgeted expenses for areas other than manufacturing.

Uses Selling and administrative expense budget

This budget helps in preparing a budgeted income statement.

Budgeted income statement

Budgeted income statement is schedule of the all income and expenditure during a particular time.

Uses Budgeted income statement

This budget is used to identify the profit /loss for specified time.

Cash budget

The cash budget is schedule consisting receipts, disbursements and financing sections.

Uses of cash budget

Helps to plan the cash inflows and outflows for particular period. Execess or deficiency will result look for further financing.

Faleel, Financial Advisor
Category: Finance
Satisfied Customers: 1
Experience: MBA Finance
Faleel and other Finance Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany


    Satisfied Customers:

    More than 5000 online tutoring sessions.
  • JKCPA's Avatar



    Satisfied Customers:

    Bachelors degree and CPA with Accounting experience.
  • Eric's Avatar


    Financial Manager

    Satisfied Customers:

    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • R. Klein, EA's Avatar

    R. Klein, EA


    Satisfied Customers:

    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.


    Satisfied Customers:

    NASD Licensed Rep, 1997-2001, Business Attorney

Related Finance Questions