ABC Company forecasts sales in units for January to May as follows: Jan Feb Mar Apr May Units 2,000 2,200 2,500 2,800 3,000 Moreover, ABC Company would like to maintain 100 units in its ending inventory at the end of eachmonth Beginning inventory at the start of January amounts to 50units. How many units should ABC Company produce in order to fulfill the expected sales of the company?
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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