ABC Ltd. makes and sells picture frames. A sales and production budget for the coming period follows: January February March April May Sales 10,000 12,000 8,000 9,000 9,500 Production 11,000 9,000 8,750 8,750 9,875 Each frame requires 3.0 meters of wood to produce. ABC began the period with 2,800 meters and their target ending inventory for wood is 20% of the next months production needs. How many meters of wood should ABC purchase in the month of March?
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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