Budgeting and Production Concepts

Flashcards addressing key concepts from budgeting and production as outlined in the lecture notes.

Budget

A financial plan that estimates income and expenses over a specified future period.

Sales Budget

A budget that estimates the expected sales revenue for a specific period.

Production Budget

A budget that outlines the number of units to be produced during a specific period.

Target Ending Inventory

The desired amount of inventory at the end of a period, typically calculated as a percentage of future sales.

Beginning Inventory

The number of units available for sale at the beginning of a financial period.

Ending Inventory

The number of units that remain unsold at the end of a financial period.

Sales Revenue

Income generated from the sale of goods or services.

Quarters

Divisions of the financial year, typically consisting of three months each.

Manufacturing Business

A company that produces goods to sell to customers.

Direct Materials Budget

A budget that estimates the materials needed for production based on the production budget.