Final answer:
To prepare a budget, an automobile company's finance team must collect estimated expenses from all departments, compute annual costs like wages and taxes, invest in production machinery as needed, set aside emergency funds, and submit a final income and expense report.
Step-by-step explanation:
The process of preparing a budget for an automobile company involves several key steps to ensure the financial plan is comprehensive and anticipates future income and expenses. Firstly, B. All departments submit yearly estimated expenses, which provides a foundation to determine the total potential outflows. Once that is accounted for, the A. Team computes annual expenses such as electricity bills, wages, and taxes, for a more detailed analysis of costs.
Subsequently, C. Team prioritizes the purchase of new machinery to enhance production if it's identified as essential for profitability. A foresight measure such as D. Team dedicates some funds for emergencies ensures resilience against unforeseen expenditures. Finally, the process culminates with E. Submits a report of estimated income and expense data, a document that encapsulates all the projected financial activities of the company for the upcoming year.