Al Kamer Company produces and sells two products; M and N. The company estimated the sales of the products as 40000 units for M and 25000 units for N. The opening stock and estimated closing stock units are given in the table below. M N Opening Stock 8000 11000 Closing Stock 4000 8000 Which of the following shows the number of units to be produced in the Production Budget. Select one: a. None of the options b. M = 44000 and N = 28000 c. M = 39000 and N = 35000 d. M = 36000 and N = 22000
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.
Al Kamer Company produces and sells two products; M and N. The company estimated the sales of the products as 40000 units for M and 25000 units for N. The opening stock and estimated closing stock units are given in the table below.
|
|
M |
N |
|
Opening Stock |
8000 |
11000 |
|
Closing Stock |
4000 |
8000 |
Which of the following shows the number of units to be produced in the Production Budget.
Step by step
Solved in 2 steps with 2 images
