Bill and Jose Enterprises are using the kaizen approach to budgeting for 2021. The budgeted income statement for January 2021 is as follows: $1,100,000 Sales (168,000 units) Less: Cost of goods sold 620,000 Gross margin 480,000 Operating expenses (includes $58,000 of fixed costs) 390,000 Operating income $90,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 2% per month. What is budgeted cost of goods sold for March 2021? O $607,600 O $620,000 O $595,448 $632,400
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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