Functional Classification of budget
(1) Sales Budget, (2) Production Budget, (3) Personnel Budget (4) Purchase Budget : Correlated with sales forecast and production planning, it deals with purchases that are required for planned production. purchase would include both direct and indirect materials and goods. (5) Research Budget (6) Cash Budget (7) Capital Budget (8) Master Budget (9) Plant utilization Budget (10) Office and Administration Budget. This budget represents cost of all administrative expenses, such as managing director’s salary, staff salaries and expenses of office management like lighting and cleaning.