NoLag product

For the different budgets link up to the NoLag product of JetSet Travel, Inc. (JTI), I would demand to see different items. Below are said budgets and items. But I would like to define what budget is first. Horngren, Datar and Foster (2002) defined budget as the quantitative expression of a proposed plan of action by management for a specified period and is an aid to coordinating what needs to be do to implement that plan (p. 835).Sales budget. This is usu entirelyy the staring point for budgeting. The budgeted gross sales for a future period restrains the production and livestock levels which also determine the manufacturing costs of JTI as well as its nonmanufacturing costs for its NoLag product. Items seen in the sales budget are the budgeted selling price for the product, budgeted number of units to be sold, and of course, the budgeted good revenues fro the product. With respect to costs behavior, the items shown in the NoLag sales budget are all shifting. That is, thes e items changes in total in proportion to the number of products to be sold. get budget. This budget identifies the direct materials to be purchased which depends on the budgeted usage of direct materials. Items seen in this budget are the direct materials needed, and under all(prenominal) material the spare-time activity are specifiedDirect materials usage for the period, Target ending inventory for the direct material, Beginning inventory for the direct material, Cost per unit of each of the direct material requirement, and Budgeted direct materials purchases for the period The direct material cost, specifically the direct materials purchase cost is a variable cost. The amount changes congress to the number of direct materials budgeted.Operating expenses budget. This budget included the nonmanufacturing costs related to the NoLag product value chain. Included in this budget are look and development, marketing, distribution, customer-service, and administrative costs. The resea rch and development costs behavior fixed or variable depends on how management allocates funds to it.If management decides that 10 pct of the total sales budget is to be allocated to research and development, then it is variable it varies according to the sales budget. The rest of the items under the operating expenses budget abut the same characteristics. For example, marketing costs are usually budgeted as a percentage of the sales budget.Capital expenditures budget. This is composed of the investing requirements of JTI with regard to the even off of the NoLag product. The expenses here are fixed which includes budgeted purchase amount of new equipments. funds budgets. The interchange budget, according to Horngren, Datar and Foster (2002), is a schedule of expected bills gain and disbursements (p. 197). Generally, the property budget has several main sections.Beginning cash balance AND cash receipts. These will form part of the cash purchasable for financing requirements of JTI. Cash receipts come from collections from customers and sales of the NoLag product. Cash disbursements are composed of direct materials purchases, direct labor and other wage and net income outlays, interest on long-term borrowing, income tax payments, and other costs and disbursements. short financing requirements. JTI needs short-term financing requirements if its total cash receipts for the period are less than its total cash disbursements. Ending cash balance. Include considerations for the variable aspects of this product and its sales References Horngren, C. T., Datar, S. M. & Foster, G. (2002). Cost accounting A managerial emphasis. New Jersey Prentice Hall.APA 1