ABC Company’s sales budget shows a quarterly sales for the next year as follows: Quarter Units Quarter Units 1 14,500 3 17,400 2 11,600 4 20,300 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the net quarter’s sales. Budgeted production for the second quarter of the next year would be a. 10,440 units b. 11,600 units c. 12,180 units d. 12,760 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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