Chapter 13, Problem 1CDQ

To determine

Concept Introduction:

Budgets:

Budgets are prepared to estimate the revenue, costs, receipts and payments for the business. There are several types of budgets prepared for a business. Few major types of budgets prepared are as follows:

• Sales budget
• Cash Collection budget
• Production budget
• Raw material purchase budget
• Expenses Budgets
• Cash disbursement budget

To Indicate:

Three major objectives of budgeting