6. Broker Corporation's budget shows straight-line depreciation on machinery of P 516,000 based on the annual production volume of 130,200 units of product. In July, it produced 8,170 units of product, and the accounts had actual depreciation on machinery of P 41,000. It controls manufacturing costs with a flexible budget. The flexible budget for the depreciation of the machine for July is:
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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