COA Manufacturing Company's budget for the coming year revealed the following unit data. Budgeted Net Income : P458,000 Variable Manuf. : P14 Variable Selling : P2.50 Variable General : P 0.25 Unit Selling Price: P50 Fixed Manuf. : P12 Fixed Selling : P5.50 Fixed General : P 7 Compute for the margin of safety in peso and in percentage.
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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