Define the term production budget.
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.
Define the term production budget.
The creation financial plan figures the quantity of units of items that should be fabricated, and is gotten from a blend of the business estimate and the arranged measure of completed products stock to have close by (as a rule as security stock to cover for unforeseen expansions sought after). The creation spending plan is normally ready for a "push" producing framework, as is utilized in a material necessities arranging climate.
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