Module+7000+I+Introduction+and+Learning+Objectives

=I. Module 7000 Introduction and Learning Objectives ldm = = =

**__Introduction:__** In Module 7000, the master budget and the operating budget will be introduced. The operating budget is part of the master budget that consists of several components. Within the operating budget are the sales, production, direct materials purchases, direct labor, overhead, ending finished goods inventory, cost of goods sold, marketing expense, research and development expense, and administrative expense budgets. Combining all of these components of the operating budget allows a company to create a budgeted income statement which is essential to the company’s planning and control.

**__Learning Objectives:__**
 * 1) Understand the components of the master budget.
 * 2) Understand the components of the operating budget.
 * 3) Know how to prepare each component of the operating budget.
 * 4) Be able to use the operating budget components to create a budgeted income statement.