Various types of budgets are as follows: 

(i) Sales Budget : It is laid down the revenue goals of the enterprise. It is a forecast of sales to be achieved, during a specified period in future. It also shows the breakup of total sales product wise, territory wise and month wise. 

Some factors should be taken into consideration while preparing the sales budget:

• Salesman’s estimates 

• General trade prospects . 

• Availability of materials 

• Potential market 

(ii) Materials Budget : Cost of production includes materials, labour and overheads. The material budget is generally prepared only for direct materials. 

The following are the steps for preparing material budget: 

• Estimate the raw-material requirement. 

• Schedule the purchases of raw materials in required quantities. 

• Controlling the inventory of raw materials. 

(iii) Cash Budget : It is the summary statement of the firms expected inflows and outflows of cash over a future time period. It is helpful in determining the future cash requirements as well as exercising control over cost and liquidity of the firm. 

(iv) Production Budget : It contains the estimate of the total volume of production productwise and week or monthwise. It is prepared to plan and organise the production programme for achieving the sales target. A well planned production programme is required to ensure sufficient stock for sales, to keep inventory within reasonable limits. 

(v) Master Budget : It is the summary of all budgets. It is incorporating its component functional budgets, which is finally approved, adopted and employed. This budget requires the approval of the Budget Committee before it is put into operation.