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From the budget to the investment
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2. Mini budget
Creating an effective budget is a very complex and difficult task .
Therefore, it is easier to design and understand a budget for smaller and
simpler accounts. These includes
Materials and purchases
2.1 Preparation of a budget
The production budge is to forecast and monitor the revenues generated
by the sale activities. The factors for this kind of budget are listed
2.1.1 The steps to create a production budget
List of all items that are sold by the business create
The unit price for each item set
Estimation of the amount of the single items
Calculation of the revenue generated by each element
220.127.116.11 Example of a production budget
Product A Product B Product
100‘000 80‘000 30‘000
5‘000‘000 5‘600‘000 2‘700‘000
2.2 Materials and purchases
This budget shows the amount of materials you need to create the
production. The factors you need to consider are: