This case study research aims to create a master budget for Handle's Homemade ice cream and identify the sales budget, production budget, and direct materials budget for the first quarter of 2023. Furthermore, it clarifies what budgets are usually used for along with identifying the person responsible for creating the financial plans or budgets in a company and the responsibility these employees possess towards creating a well-established and efficient budget plan. In addition, the paper will discuss a few advantages and disadvantages which accompany setting fixed budgets at the beginning of the year along with identifying other budgets that may be included when creating a budget plan. Since a budget is a statement about the future as it attempts to connect suggested and proposed expenditures with wanted future events in the company (Wildavsky, 1986), the paper will examine the extent of the impact of budgeting on employees' evaluation. It will also examine performance reporting and identify the key roles it plays in management.

What are budgets used for and what should be the driving force behind Patío Pillows in the budgeting process?