This case study research aims to create a master budget for Handle's Homemade ice cream and identify the sales budget, production budget, and direct materials budget for the first quarter of 2023. Furthermore, it clarifies what budgets are usually used for along with identifying the person responsible for creating the financial plans or budgets in a company and the responsibility these employees possess towards creating a well-established and efficient budget plan. In addition, the paper will discuss a few advantages and disadvantages which accompany setting fixed budgets at the beginning of the year along with identifying other budgets that may be included when creating a budget plan. Since a budget is a statement about the future as it attempts to connect suggested and proposed expenditures with wanted future events in the company (Wildavsky, 1986), the paper will examine the extent of the impact of budgeting on employees' evaluation. It will also examine performance reporting and identify the key roles it
plays in management.

Questions:

1. Master Budget (production- sales-direct materials)?

2. What are budgets used for and what should be the driving force behind Patío Pillows in the budgeting process?

3. Who in the company (identify positions only) should be involved in the budgeting process? Based on the positions, what responsibilities do each of these individuals have?

4. What are the advantages and disadvantages of creating a budget at the beginning of each fiscal year?

5. Besides these budgets calculated, what other budgets should be included in a manufacturer's master budget?

6. How does performance reporting play a role? Are budgets used for employee evaluation? How?

7. Benefits of Budgeting?

Answer rating: 100% (QA)

1 Master Budget production salesdirect materials The master budget consists of three separate budgets which are the production budget sales budget and direct materials budget The production budget is ... View the full answer