Start-Up Company Budgeting: The Benchmark and Cost System to Implement

Start-Up Budgeting
Name CourseInstructor Date
You will decide what type of budget to implement for a start-up company.  
Summary of the manufacturing company
 The type of manufacturing company is an automobile (auto) part manufacturing company. The proposed auto parts manufacturing company is based in Fremont, California. Auto parts manufacturing plants would increase manufacturing capacity in the region, but auto parts also require huge investments. A thorough analysis of the company's value chain is necessary to identify areas requiring improvement. There is integration with the local economy and close working relations with suppliers, internal and customers. Coordination of the value chain participants requires a degree of integration, and logistics can link the value chain with the production system, subject to uniform specifications and inputs from anywhere.
Automotive companies manufacture vehicles and trucks using various parts that make up a vehicle, with some parts being supplied by direct suppliers, including international suppliers. Other suppliers outsource their activities or are supplied by other suppliers if they have no access to raw material suppliers. Having an auto part manufacturing company that supplies to auto manufacturing companies is a viable option barring the high production and initial costs. To respond to variable demand and shorter delivery times strategies that make it easier to meet objectives including through an efficient supply chain by having diverse suppliers and reducing the problem of raw material shortage. The company would have its own production and design units while also marketing and distributing the auto parts.
The type of budget for the company
An operating budget is created, and this type of budget features activities of producing, selling, and managing the organization. This budget mainly focuses on the sales and costs, and the manufacturing costs include labor, materials, and overhead. These are the typical activities through which a company carries out its mission of offering products to society. These activities give rise to the budgets linked to sales, production, purchases, and requirements for raw materials, labor, indirect expenses, operating expenses, and sales costs. Then there is a summary of a report that allows management to determine operations to achieve a budgeted income statement.
The budget review steps begin with defining the budget objectives by outlining the aim of the budget. This is followed by using data for similar companies, and data is the basis for developing the budge...