Budgeted Income Statement

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on February 28, 2023

The data from the budgets prepared earlier are combined to prepare the budgeted income statement.

This budget helps to determine whether the profits stated in the other budgets are realizable.

The cost of goods sold is calculated based on information from the direct materials, direct labor, and factory overhead budgets. In the case of the sales budget, this is used to generate a figure for estimated revenue.

Within a company, the budget director can include information from the selling expense and general/administrative expense budget to prepare the budgeted income statement.

Budgeted Income Statement FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.