[Verse 1] Start with sales, the master plan How many units we think we can Sell to customers through the year Revenue projections crystal clear Multiply by price to see the gold This budget's foundation, strong and bold [Chorus] Sales leads production, production needs materials Direct labor hours, overhead's not trivial Five budgets dancing, interconnected flow S-P-D-D-O, that's how the budgets go Sales, Production, Direct materials too Direct labor, Overhead - the master budget crew [Verse 2] Production budget takes the stage Sales demand plus ending gauge Minus what we have in stock Units needed, around the clock Finished goods inventory planned Manufacturing output in our hand [Chorus] Sales leads production, production needs materials Direct labor hours, overhead's not trivial Five budgets dancing, interconnected flow S-P-D-D-O, that's how the budgets go Sales, Production, Direct materials too Direct labor, Overhead - the master budget crew [Verse 3] Direct materials break it down Raw materials by the pound Usage rates times units made Plus ending stock, minus what we've laid Away in storage, purchase needs Materials budget plants the seeds [Bridge] Direct labor calculates the time Standard hours, wage rates align Overhead allocates the rest Utilities and factory costs assessed Variable rates and fixed amounts Every manufacturing dollar counts [Verse 4] All five budgets link as one Production drives what must be done Materials flow to labor's beat Overhead makes the cycle complete From sales forecast to final cost No connection can be lost [Chorus] Sales leads production, production needs materials Direct labor hours, overhead's not trivial Five budgets dancing, interconnected flow S-P-D-D-O, that's how the budgets go Sales, Production, Direct materials too Direct labor, Overhead - the master budget crew [Outro] Operating budgets pave the way For the master budget's display Five components, one foundation CPA examination preparation
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