Annual profit plan and supporting schedules

Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Planning, Budgeting, and Forecasting. 11 min read, ~1,602 words.

Sales budget is the anchor: production, materials, labor, overhead, S&A, and cash all derive from forecast units. Production = sales + ending FG − beginning FG; materials follow the same rollforward at the RM level. Direct labor cost = units × hours per unit × wage rate; the plan is...