A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs. Fixed Budget Sales (8,000 x $730 per unit) Costs Direct materials Direct labor Indirect materials Supervisory salary Sales commissions Shipping Administrative salaries Depreciation Insurance Office rent Income Multiple Choice - $752,000. $618,000. Office equipment $1,076,000. $ 5,840,000 584,000 968,000 354,000 134,000 284,000 312,000 424,000 74,000 44,000 76,000 $ 2,586,000
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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