ABSTRACT
All the activities of the business are operated upon the basis of a budgetary program under the control of the executive committee. In general the plan is this: The sales manager estimates the total volume of sales desirable and possible, and determines its distribution among the various sales divisions and branches. Upon the basis of this Sales Budget the production manager and his superintendents assign production quotas to the different manufacturing divisions. The treasurer, after getting estimates from the different spending units, makes up the Expense Budget. To some extent the above estimates are made in co-operation, the executive committee consulting, comparing, revising, and taking into account the desires and opinions of various lesser executives. Upon the basis of the above budgets, the president, with the assistance of the controller, makes up the Financial Budget for the year, and an Estimated Balance Sheet and Profit and Loss Statement.
