This project report focuses on the preparation of a Master Budget for a manufacturing company named BD Fashion Ltd. as part of the Cost & Management Accounting (ACT 201) course. The company mainly produces T-shirts and operates within Bangladesh, with future plans for expansion. The report aims to demonstrate how different functional budgets are prepared and combined to support managerial planning and control.

The report begins with an introduction to the company, followed by its organizational hierarchy. It then explains the concept, purpose, and advantages of a master budget, highlighting its role in planning, coordination, performance evaluation, and decision-making.

The core of the project involves preparing a series of interrelated budgets for the quarter ending June 30, 2024. These include the Sales Budget, Cash Collection Budget, Production Budget, Direct Materials Budget, Direct Labor Budget, Manufacturing Overhead Budget, Ending Inventory Budget, and Selling and Administrative Expense Budget. Each budget is prepared using realistic assumptions and clearly stated policies.

Based on these functional budgets, the report develops a Cash Budget to analyze cash inflows, outflows, financing needs, and ending cash balances. Finally, a Budgeted Income Statement and a Budgeted Balance Sheet are prepared to forecast the company’s profitability and financial position at the end of the period.

The report concludes that the master budget is an effective managerial tool for planning, coordination, and financial control. It shows how all functional budgets are interconnected and how proper budgeting helps management achieve organizational goals. The project also provides recommendations emphasizing the importance of consistent budgeting assumptions and budgetary control for efficient business operations