Budgetary Control

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Budgetary Control

5. Purchase Budget

Raw Material Budget
 This budget shows the estimated quantities of all the raw materials and components needed for production demanded by the production budget.
It serves the following purposes
 It assists purchasing department in planning the purchases It helps in the preparation of purchase budget It provides data for raw material control.
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5. Purchase Budget
 One of the most significant areas of cost saving in any concerns It provides a detail plan of purchases for the budget period .
 It indicates;
a) The quantities of each type of raw material and other items to be purchased b) The timing of purchases c) The estimated cost of material purchases
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