Coleman Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $6,000 for electric power. Total fixed costs are $20,000. At 12,000 units of production, a flexible budget would show: a.variable and fixed costs totaling $79,200. b.variable costs of $55,200 and $20,000 of fixed costs. c.variable costs of $55,200 and $24,000 of fixed costs. d.variable costs of $46,000 and $20,000 of fixed costs.
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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