4. A company manufactures two products A and B and the budgeted data for the year are as follows: the sales manager forecasted the sales in units which are given. Product A Product B January February March 28 10 28 12 24 16 April May June 20 20 16 24 24 20 16 July to January (next year )| 18 per month Assume there is no work in progress at the end of any month and the finished units equal to half the sales for the following month will be kept in stock. Prepare production budget for each month.
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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