Income Statement Budget Definition

To make it easier the number of line items in a budgeted income statement should be similar to the ones in the actual income statement.

Income statement budget definition. The budgeted income statement contains all of the line items found in a normal income statement except that it is a projection of what the income statement will look like during future budget periods. An income statement or profit and loss report p l report or statement of comprehensive income or statement of revenue expense reports on a company s income expenses and profits over a stated period. The budgeted or pro forma income statement is prepared after the operating budgets have been completed. A profit and loss statement provides information on the operation of the enterprise.

A budgeted income statement is most useful when it represents all budget periods in one report. Budgeted income statement definition. This way it becomes easy to compare the results of all periods and also identify anomalies. It is compiled from a number of other budgets the accuracy of which may vary based on the realism of the inputs to the budget model.

An income statement is one of the three major financial statements that reports a company s financial performance over a specific accounting period. The cost of goods sold on the income statement is calculated using the per unit cost of 11 25 which consists of 1 40 per unit for direct materials 7 00 per unit for direct labor and a manufacturing overhead rate of 2 85. A budgeted income statement is a financial report that compares the budgeted revenue and expense figures with the actual performance numbers achieved during the period.