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            There are four steps in process of budgeting which are budget bases, operating budgets, project budgets and financial budgets.
             In first step of budgeting, budget bases, some factors will be shown that the organisational goals, strategic plan, balance sheet and budget assumptions (Carnegie et al., 2000, P. 856).
             In the operating budgets section, it could be separated with the Major operating budgets and Support budgets. The major operating budgets contains sales budget which includes production budget and expenses budget based on realistic forecasts. Also production budget shows details and calculations of sales such as cost budget, direct material budget, direct labour budget and manufacturing overhead budget and schedules of cash budget and budget cost of goods sold are shown in support budgets (Carnegie et al., 2000, P. 857).
             Project budgets may relate to capital budget and budget of research and development. This project budgets may need to be identified in the strategic plan because it would be affected strongly to the operating plans or later period when the project connect with the operating capacity (Carnegie et al., 2000, P. 858).
             The budgeted financial statements shows that forecast of budgeted balance sheet which is the result of the activities and proposed position at the end of year. Also budgeted profit and loss statements and cash budgets are shown in this section (Carnegie et al., 2000, P. 858).
             However, there is also important thing with behavioural issues of budgeting is that if the budget is seen to be dogmatic and unfairly created, people may reject budget targets(Carnegie et al., 2000, P. 877). .
             In my opinion, the administrative expenses of Maitland Manufacturing are set too high so it may cause the decrease of profit so people could reject the goal. Also there is a problem with the budgeting of Maitland Manufacturing but the managers seem to maintain the budget. However if managers do not control the budget, the subject of budget would not give much concerns so would not be affected to the motivation.

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