You will be writing a paper, please strictly follow the instructions guidelines and meet all of its requirements:

Instructions Guideline:

You are demonstrating an understanding related to why organizations develop and use budgets, along with the processes they utilize when creating the budgets and the differences between variable, fixed, mixed, and other related costs.

Please ensure that you provide a thorough summary including all relevant facts.

1. Jimmy's Master Budget:

Jimmy is launching a new company named Jimmy's Medicine. He will manufacture and market this cognitive enhancement medication to anyone with memory impairment. Jimmy is in the process of compiling the necessary budgeting documentation for the new company.

A. Describe the order of the operating & financial budgets and schedules and the rationale for why management develops them in that specific order.

B. Explain in detail the purpose of each budget & schedule to prove an understanding of the document.

C. Make a diagram detailing the order of budgetary documents.

1. budgeted balance sheet

2. budgeted income statement

3. capital asset/expenditure budget

4. cash budget

5. cash collections schedule

6. cash payments schedule

7. direct materials budget

8. direct labor budget

9. master budget

10. manufacturing overhead

11. production budget

12. sales budget

13. selling and administrative budget

2. PPP Manufacturing and XYZ Manufacturing make identical products. However, most of PPP's costs are fixed while XYZ's costs are mostly variable costs.

1. Describe the difference between fixed and variable costs. Give an example of a 2 variable costs for a bakery that bakes loaves of bread that sells to retail stores.

2. Which expense is often the more expensive between fixed and variable? Support your response with logical justification.

3. If sales grow for both firms, which company will have the most significant increase in profits?