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Explain manufacturing budget.
Manufacturing budget needs the following fundamental budgets or estimates to meet the plans:-
(i) To be manufactured, production budget outlining the schedule of product units.
(ii) Direct material budget.
(iii) Plant (of space) and equipment budget.
(iv) Upholding budget.
(v) Manufacturing expense budget (as overhead).
(vi) Labour budget.
Production budget is a part of manufacturing budget. Manufacturing assists management in maintenance production at an even level and in controlling the use of material, equipment and labour.
Assignable Causes - Causes of Variability Variability in process output may also be the result of external causes which are separately identifiable, and which are not inherent
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