3. Budji Corp. is preparing its budget for 19B. For 19A, the following were reported: Sales (100,000 units) P1,000,000 600,000 P 400,000 240,000 Cost of Goods Sold Gross Profit Operating Expenses (including depreciation of P40,000) Net Income P 160,000 Selling prices will increase by 10% and sales volume in units will decrease by 5%. The cost of goods sold as a percent of sales will increase to 62%. Other than depreciation, all operating costs are variable. Budji will budget a net income for 19B of a. P167,100 b. P167,500 c. P168,000 d. P176,000
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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