【正文】 ion Plan 8. Labor Hiring and Training Plan 10. Expected Financial Results 4. Inventory Policy 6. Productive Capacity 7. Materials Purchasing Plan 9. Administrative and Discretionary Spending Plan 11. Statement of Expected Cash Flows 12. Projected Financial Statements Learning Objective 3 Explain the different types of operating budgets and financial budgets and their interrelationships. Master Budget Outputs ?The master budget includes two sets of outputs: The expected or projected financial results The plans or operating budgets Operating Budgets ?Operating budgets typically consist of six operating plans: u The sales plan identifies the planned level of sales for each product. u The capital spending plan specifies the longterm capital investments. u The production plan schedules all required purchasing activities. Operating Budgets 4 The materials purchasing plan schedules all required purchasing activities. 5 The labor hiring and training plan specifies the number of people the anization must hire or release. 6 The administrative and discretionary spending plan includes administration, staffing, research and development, and advertising. Financial Budgets ?Planners usually present the projected financial results, or financial budgets, in three forms: u A statement of expected cash flows u The projected (pro forma) balance sheet u The projected (pro forma) ine statement Financial Budgets ?Financial analysts use the statement of projected cash flows in two ways: u To plan when excess cash will be generated so that they can undertake shortterm investments u To anize how to meet any cash shortages Learning Objective 4 Describe the way that anizations effectively use and interpret budgets. The Budgeting Process ?What is a demand forecast? ?It is the estimate of the market demand, or sales potential, for a product given the specific product price. ?This forecast drives the budgeting process. ?What is the production plan? ?It identifies the intended production during each subperiod of the annual budget. The Budgeting Process ?How frequent can budget subperiods be? u daily u weekly u monthly ?Planners use the inventory policy along with the sales plan to develop the production plan. The Budgeting Process ?What is aggregate planning? ?It is an approximated determination of whether the anization has the capacity to undertake a proposed production plan. ?What are spending plans? ?They are tentative resource mitments. The Budgeting Process ?What are examples of spending plans? Materials purchasing plans Labor hiring and training plan Administrative and discretionary spending plan Capital spending plan The Budgeting Process ?What r