Format of the Report:1. You should at least have the following details:a. Assignment Cover page clearly stating your name and student numberb. A table of contents, executive summaryc. A brief...

Managerial Accounting
Course Name
Course Date
Student’s Name
MANAGERIAL ACCOUNTING        10
Contents
Executive Summary    3
Introduction    4
Budgeting    4
Master Budget    5
Top down and bottom up budgeting    5
Projected Income Statement    7
Conclusion    9
References    10
Executive Summary
Budgeting is one of the most important aspects of managerial accounting. It is one of the widely used planning and forecasting tool which is used by the companies. In this project we will be analyzing the budgeting process as well as the master budget of Australian Pharmaceutical company. We have done the analysis of the top-down approach within the organization and have analyzed that the company uses participative budgeting for preparing its budgets. Apart from that we have also prepared the projected income statement for the year 2019, on the basis of the facts given by using the 2018 annual report.
Introduction
Budgeting plays a crucial role for all the organizations as it helps in planning, controlling and forecasting. It is one of the major tools which can be used for forecasting and planning and analysing the future performance of the company.
In this report, we will be doing the budget analysis of Australian Pharmaceuticals Limited. Australian Pharma company is one of the biggest companies of Australia. The company has focused on strong strategy to diversify the earnings and having a new growth in the business. The company has different
ands with a strong growth opportunities. Some of the major
ands of the company includes priceline pharmacy, clear skincare, pharmacist advice and other pharmacy and chemists. The company has a strong focus on enriching life as the most inspirational choice for health, beauty and well being. The company has strongly positioned itself as one of the most established healthcare company across the globe. The company has focused on providing different offers to the customers and improving on their profitability. The company’s operational performance has also grown over the last year. The company has been affected by PBS, which has resulted in the reduction of gross profit by $10 million. In the year 2018, the company has recorded a net profit after tax of $54.7 million which is more than 0.9% as compared to the last year.
Budgeting
Budgeting plays a crucial role for all the organizations as it helps in planning, controlling and forecasting. It is one of the major tools which can be used for forecasting and planning and analysing the future performance of the company. It also helps in identifying the future activities and quantify them in the financial aspect and term. There are different kinds of budgets that can be used by the company as a controlling and a planning tool.
Master Budget
The budgets are prepared by the organization as per the requirements of the company. The budgets can be prepared on the quarterly basis, monthly basis and yearly basis. Master budget is one of the most important budget that is prepared by the organization which includes all the budgets of the company.
Master budget is one of the most important budget which takes care of all the operational as well as the capital budgets of the company. The master budget starts with the forecasted sales budget which is followed by manufacturing budgets like production budget, direct materials budget, direct labor budget and manufacturing...