A Management Accounting student has been tasked to produce a production volume budget for a company. They have been provided the following information Sales for January, February and March have been forecast to be 9000,8500 and 9200 respectively Inventories of finished goods January 6,000 The closing inventory of finished goods at the end of January, February and March must be equal to 75% of the forecast sales for the following month. Sales in April is expected to be 12000 units
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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