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Budgeting Interview Question:
Which budgets are prepared under the production budget?
Submitted by: AdministratorMaterial Budget to estimate the material cost
★ Direct Labour Cost Budget to estimate the labour cost which are required to product the quantity as specified in the production budget.
Overhead Budget to estimate production overheads.
★ Production budget is prepared after taking various budgets into consideration. For a proper estimation of various costs associated with the production process makes it important to prepare production budget for the period in which production will take place.
Submitted by:
★ Direct Labour Cost Budget to estimate the labour cost which are required to product the quantity as specified in the production budget.
Overhead Budget to estimate production overheads.
★ Production budget is prepared after taking various budgets into consideration. For a proper estimation of various costs associated with the production process makes it important to prepare production budget for the period in which production will take place.
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