Question

Assume that Samsung’s consumer electronics division is charged with preparing a master budget. Identify the participants—for example, the sales manager for the sales budget—and describe the information each person provides in preparing the master budget.

Short answer

Some of the participants are Sales Managers, Product Managers, and Accountants.

Step-by-step solution

Meaning of Sales Budget

Companies periodically create a sales budget to project how many units will be sold over a specific time based on consumer purchasing patterns, demand, inventory levels, and the company's capability.

Identifying the participants

The master budgeting process involves several participants. Although there are variations from firm to company, the advice below is typical.

Sales Manager:This person is in charge of supplying unit-based sales projections, which willutilize to determine future production needs.

Production line Manager:This person must ensure that the budgeting data is within the production capacity and provide cost information for the various production aspects per-unit basis (such as assembly, shipping, materials, etc.).

Product Manager:This person is in charge of disclosing information on the costs associated with the creation of new items anticipated throughout the time.

Customer Support Manager:This person is responsible for contributing information on anticipated warranty and servicing costs for the time frame.

Human Resources Manager:This person is responsible for contributing ideas for further hiring that will affect fixed expenditures.

Accountants:This person is responsible for compiling the master budget and assessing all the data supplied by other managers.

Chief Financial Officer: When the master budget is ready, this individual is in charge of examining it and delivering it to the board of directors.