A manager invested in a manufacturing corporation and according to him the estimated expense budget expense was 1 million while the revenue generation was about to be 4 million with some minor variation. While the financial statement at the end showed that the total expenses are 1.2 million and revenues are 1.5 million from one operation while it was 2.5 million from the all other operation. Based on the scenario above can u explain that what is budget slack. Either it is occur due to negligence of staff, expenses or revenue, make a analysis and write in your own words.
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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