There is depreciation expense for administrative

The or modeling brochures There is a burden for all training equipment Salary expenses for sales division employees Administrative Expenses Administrative expenses mean costs incurred for administrative purposes within the company for example Employee salary expenses for the administration department  equipment Expenses for all equipment that supports administration Budget Policy for Service Company Budgets By looking at the various types of information presented above of course there are several main policies in implementing a service company budget in a company. For example as in the following points.

Budget Policy Based on Production Volume This policy was created by looking at the production volume that Job Function Email List Job Function Email List the company can produce each month. So calculating the budget based on this one thing is often related to the companys ability to produce a number of goods. Where the components that influence this are the number of workers machine hours and other operational components. Therefore in preparing budget policies with reference to production volume comprehensive information is needed regarding the total amount of monthly production on a regular basis up to the number of sales of units of goods that have been produced.



From here you will find out how much volume of goods is needed to be produced and then a budget calculation will be carried out to be able to carry out these production needs correctly. Budget Policy Based on Supplies Its different if you determine budget policies based on the companys existing product inventory. In this case what is used as a reference is the amount of goods available in the company how many sales occur and how much stock must be available as company inventory at the start. From the results of calculating the points above you will get a number of goods that must be produced in that month. So that in this way the allocation of funds for producing goods can be given optimally.