A company is preparing its production budget for product XY for the forthcoming year. Budgeted sales of product XY are 1,800 units. Opening inventory is 190 units and the company wants to reduce inventories at the end of the year by 10%. What is the budgeted number of units of product XY to be produced in the following year? OA. 1,392 OB. 1,781 OC. 1,488
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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