Prepare a sales budget, including schedule of expected cash receipts. The sales budget forms the foundation for the master budget. It provides details concerning the anticipated units and dollar sales for each budget period. The schedule of excepted cash receipts is based on the sales budget, the expected breakdown between cash and credits sales, and the expected pattern of collections on credit sales. Prepare a production budget. The production budget details how many units must …showed first 75 words of 819 total…

…showed last 75 words of 819 total…or machinery to be put at a historical cost, which does not take depreciation into account. Objectivity and verifiability of data are emphasized and only the summarized data for the entire organization are prepared. As to managerial accounting relevance is emphasized and timeliness of information is required. A benefit of detailed segment reports about departments, products, customers, and employees are prepared. You do not need to follow the GAAP and external reports are not mandatory.