Budgets

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Hi..can anyone let me know how to prepare budgets of a Manufacturing company and contruction company., thanks

Replies (1)

Hi mohammed,

you can search for the budget template which will be available in the google.

While preparing the budget for the manufacturing company you need to consider the following:

direct material

direct labour

other direct expenses

and other indirect expenses like advertisement, utilities, stationery, salaries for staffs other than those involved in production processes, selling & marketing expenses and other general expenses.

you should also consider the inflation applicable to the specific business for which you are preparing the budget.

It is better if you prepare separately for direct material, wages & salaries, selling and marketing expenses, so that you can easily compare the salaries, direct cost while doing the variance analysis.

As far as the construction industry is concerned you need to concentrate only in indirect expenses, there also it is better to keep separate budget for manpower, selling and distribution expenses.

Cheers and all the very best.

regards

Balaji S.

 


CCI Pro

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