3 Sunny Enterprise, a manufacturing company, produces a special component part and le provided the following budgeted and actual information: Budget: Sales lunits) 80,000 Selling price RM18.00 per unit Variabie cost RM14.00 per unit Actual: Sales lunits) 72,000 Selling price RM16 40 per unt Variable cost HM1240 per unit Required: a. Calculate all the appropriate sales variances using the standard vanable coms approach. b. Explain the possible causes of those vatiances.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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