A company budgeted sales of 200,000 toys for November 2020 and 350,000 toys for December 2020. The company has a policy of having an inventory of toys on hand at the end of each month equal to 40% of next month's budgeted toys sales. There were 80,000 toys of inventory on hand on October 31, 2020, how many toys should be produced in November 2020 in order for the company to meet its goals? Question 7 options: a 140,000 toys b 280,000 toys c 260,000 toys d 200,000 toys
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.
A company budgeted sales of 200,000 toys for November 2020 and 350,000 toys for December 2020. The company has a policy of having an inventory of toys on hand at the end of each month equal to 40% of next month's budgeted toys sales. There were 80,000 toys of inventory on hand on October 31, 2020, how many toys should be produced in November 2020 in order for the company to meet its goals?
Question 7 options:
|
a
|
140,000 toys |
|
b
|
280,000 toys |
|
c
|
260,000 toys |
|
d
|
200,000 toys |
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