SERENDIPITY --- SALES AND PRODUCTION BUDGET -- 8 ANISHA GOHAIN ( A ) , 8 HARJEET KAUR (B), 135 KHUSHDEEP SINGH (C)

SALES AND PRODUCTION BUDGET

INTRODUCTION
Budget is a monetary plan in which income to be generated and expenditure to be incurred are prepared and are approved prior to the given period of time.
SALES BUDGET:- This budget is very important because all other budgets are build up. It is a forecast of quantities and values of sales to be achieved in a budget period .
The sales manager is responsible for the accuracy of the budget.
PRODUCTION BUDGET:- After preparing sales budget the next budget will be production budget. In this budget , the works manager prepare schedule of production by breaking large production in small units to fulfill the target production.
BY:- ANISHA GOHAIN SEC A

DISCUSSION
In the Sales budget in charge or expert forecast the future expected sales of the firm. The sales budgets may prepare on basis of product, type of customers, salesman, locality etc.
For the preparation of sales budget the following things should be taken care of :-
Past sales & trends, salesman estimates, plant capacity, availiability of raw material &other supplies, orders in hand, seasonal fluctuations, competition ,financial aspect, general trade prospects, adequate return on capital employed, miscellaneous consideration.
A properly operated production budgets leads to inventory control, improved maintenance of production schedules and production targets.
PRODUCTION BUDGET may be expressed in quantitative (weights , units etc)or financial (rupees)units or both.
This budget is prepared after taking into consideration the estimated OPENING STOCK, ESTIMATED SALES AND the DESIRED FINISHED STOCK of each product.
Planning the level of production helps in deciding the
 What is to be produced?
 When it is to be produced?
 How it is to be produced?
 Where is to be produced?
The works manager is responsible for the total production budget and the departmental managers are responsible for the departmental production budget

FORMAT OF SALES AND PRODUCTION BUDGET

SALES BUDGET
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
UNITS
SALE PRICE/UNIT
TOTAL
SALE

PRODUCTION BUDGET
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
BUDGETED
UNIT SALES
DESIRED
ENDING
INVENTORY
TOTAL UNITS NEEDED
Less: BEG.
INVENTORY
UNITS TO PRODUCED

BY:- HARJEET KAUR SEC B

CONCLUSION
The sales budget will help determine how many units will have to be produced. Thus, the production budget is prepared after the sales budget.
The SALES AND THE PRODUCTION BUDGET ARE INTER –DEPENDENT because production budget is governed by the sales budget & the sales budget is largely determined by the production capacity & by production cost.
BY:- KHUSHDEEP SINGH SEC C