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Budget preparation for a manufacturing company is depend on the type of production and the flow of operation. In general, following steps can be suggested for a budget.
. Review the long term plan.
. Identify the principal budget factor and prepare the budget for it.
. Prepare the sales budget.
. Prepare the finished goods stock budget and production budget.
. Prepare budgets of resources for production, Material usage budget, based on the production budget, showing quantities and perhaps the cost for each type of material used,
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