The Direct Labor Budget is one of the budget types you’ll need to know about for the CMA exam. It can be controlled by outside forces; labor unions being the most important among them. Usually, there is an increase in the cost of direct labor whenever older labor contracts are completed, and fresh contracts are initiated. Furthermore, technological advancements which … Read More
Exam Strategies that Work – Essay Questions
“Go confidently in the direction of your dreams. Live the life you have imagined.” Henry David Thoreau Essay Questions This part of the exam has many candidates stressed out and worried, and with reason. The exam allocates one hour to answer two essay questions. That alone can seem daunting, but don’t let it get to you. By learning a few exam … Read More
CMA Exam Study Notes: The Sales Budget
The sales budget of an organization indicates the anticipated sales in units of each product/service and the anticipated selling price of these products/services. The sales budget is dependent upon the enterprise’s projected sales, its manufacturing capability, and its short- and long-term goals. The First Budget in the Budgeting Process In an enterprise, the sales budget is always the first budget … Read More
CMA Exam Study Notes: The Production Budget
The Production Budget of an enterprise is based on its sales budget. Typically, the production budget is in line with the capacity and inventory needs of the enterprise. Production Plans and Inventory Levels When an enterprise receives a huge order unexpectedly, it will need to boost its inventory level to deliver the finished goods in time. Here, when the enterprise … Read More
CMA Exam Study Notes: Annual/Master Budget
The Annual Budget, commonly known as the Master Budget, comprises various budgets of an enterprise. Developing an annual budget for a large business takes several months to complete. The Development of the Annual Budget The annual budget of an enterprise can be fully developed only when all its other budgets have been entirely finished. For instance, the purchase budget cannot … Read More
