1. Chapter 3 Operating budgets
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

2. Operating budgets Purchases budget Cost of goods sold budget
Operating expense budgets 1. Marketing expense budget 2. Administration expense budget 3. Financial expense budget
Specialised service industry budgets 1. Professional and support labour budget 2. Materials usage budget
Budgeted statement of financial performance
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

3. Purchases budget in dollars for 3 months ending 30 June
April $
May $
June $
Quarter $
Cost of sales
add ending stock
Total requirements
less beginning stock
purchases
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

4. Purchases budget in units for quarter ending 31 March
Jan
Feb
March
Quarter
Sales [units]
Ending stock [units]
Total req. [units]
less beginning stock [units]
Purchases [units]
Cost per unit $
Cost of purchases $
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

5. Cost of goods sold budget for 3 months ending 30 June
April $
May $
June $
Quarter $
Beginning stock
Purchases
Goods available for sale
Ending stock
Cost of sales
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

6. Marketing expense budget for 3 months ending 30 June
April $
May $
June $
Quarter $
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

7. Administration expense budget for 3 months ending 30 June
April $
May $
June $
Quarter $
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

8. Financial expense budget for 3 months ending 30 June
April $
May $
June $
Quarter $
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld

9. Budgeted statement of financial performance for 3 months ending 30 June
April $
May $
June $
Quarter $
Sales
less COGS
Gross Profit
Operating exp.
Marketing
Administration
Financial
Total Expenses
Net Profit
Copyright  2003 McGraw-Hill Australia Pty Ltd
PPTs t/a Budgeting, second edition, by Banks & Giliberti
Slides prepared by Mya Aronfeld