hector corporation is a manufacturing company with annual sales of 25 million 544719

May

The company’s controller and other members of the budget committee meet to discuss plans and objectives for next year.

The controller conveys all relevant information from this meeting to division managers and department heads.

June

Division managers, department heads, and the controller meet to discuss the corporate plans and objectives for next year. Theydevelop a timetable for developing next year’s budget data.

July

Division managers and department heads develop budget data. The vice president of sales provides them with final sales estimates, and they complete monthly sales estimates for each product line.

August

Estimates of next year’s monthly production activity and inventory levels are completed. Division managers and departmentheads communicate these estimates to the controller,who distributes them to other operating areas.

September

All operating areas submit their revised budget data. The controller integrates their labor requirements, direct materials requirements, unit cost estimates, cash requirements, and profit estimates into a preliminary master budget.

October

The budget committee meets to discuss the preliminary master budget and to make any necessary corrections, additions, or deletions. The controller incorporates all authorized changes into a final draft of the master budget.

November

The controller submits the final draft to the budget committee for approval. If the committee approves it, it is distributed to all corporate officers, division managers, and department heads.