Britten plc is preparing its production budget for product A for the forthcoming year. Budgeted sales for product A are estimated to be 4,800 units. Opening inventories are 450 units and the company wants to reduce its inventories by 12% by the end of the year. The budgeted number of units of product A to be produced is: a) 5,250 units b) 4,746 units c) 4,350 units d) 4,296 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.
Britten plc is preparing its production budget for product A for the forthcoming year. Budgeted sales for product A are estimated to be 4,800 units. Opening inventories are 450 units and the company wants to reduce its inventories by 12% by the end of the year.
The budgeted number of units of product A to be produced is:
-
a) 5,250 units
-
b) 4,746 units
-
c) 4,350 units
-
d) 4,296 units
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