TO:

Professor Hatfield, Shauna

FROM:

Amit Shankar

SUBJECT: Reflection paper

DATE:

Dec. 09th. 2014

Learning Master Budgeting was very interesting and fun this semester. The chapter on process of
budgeting concludes the all factors and process involved that we learned in the previous
chapters. As I came to acknowledge that, it made a lot of sense why we were to start from the
beginning to study each topic in details ranging from sales, production process and the cost of
goods sold at the end which are normally applied in day to day business life of manufacturing
company.
Master budget provides the layout for the future production. The process of achieving goals and
target sales and profits are designed through the estimated budget for the new calendar year,
which is based on the achievement and performance of the prior year. It also assists in
controlling, planning and decision making process of the company. Mainly, it provides the data
on production level and its inventory which are the major cost of any company which are
dependent of heavy machinery equipment, direct and indirect material and labors and comprises
of huge capital investment. So there is always a need for the correct information that are relevant
and logical needed for the managers to look into the project or job, and analyze internal report
and evaluate job performance at each category of production which ultimately defines the
success in terms of sales and profits.
I gained a managerial perspective through the process of learning and understanding of
managerial accounting as a whole that why it is important to look into the internal aspects of

producing a good and the process it takes until they are sold, is very critical in making both
managerial and financial decisions.