Based on predicted production of 25,000 units, a company budgets $280,000 of fixed costs and $275,000 of variable costs. If the company actually produces 19,800 units, what are the flexible budget amounts of fixed and variable costs? -----Flexible Budget------ Variable Amount per Unit Total Fixed Cost 19,800 units $ 275,000 Variable cost Fixed costs 280,000 $
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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