A firm is in the process of preparing budgets for the upcoming period. The firm manufactures wooden toy trucksSales vary significantly, peaking in the holiday seasonManagement wishes to maintain an ending inventory equal to 20% of the next month's salesFollowing is the firm's anticipated sales for the upcoming period. October 2,000 toy trucks November 2, 500 toy trucks December 8, 500 toy trucks January 1, 200 toy trucks February 850 toy trucks How many trucks should the firm manufacture in November?
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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