Conceptual objectives:

1. Describe the importance and benefits of budgeting and the process of budget administration.
2. Describe a master budget and the process of preparing it.

Analytical objectives:

1. Analyze expense planning using activity-based budgeting.

Procedural objectives:

1. Prepare each component of a master budget and link each to the budgeting process.
2. Link both operating and capital expenditures budgets to budgeted financial statements.
3. Appendix 20A—Prepare production and manufacturing budgets.