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Budgeting


BUDGETING

Budgeting

Budgeting

Chelsea pharmaceutical is a company specializing in dermatological medicines. The whole company functions on the budgeting and planning done before the business year commences. The sales forecast guides the operating, financing and investing decisions.

On the basis of sales forecast resources are allocated for operating, investing and financing activities. Operating activities involve the acquisition of inputs such as raw material and other discretionary spending. Operating budgets vary industry to industry, in pharmaceuticals operating inputs account for less as compared to other manufacturing sectors.

Next based on sales forecast financial budgets are prepared for the coming year. Based on the data the capital ...
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