FCC Company ended last year with 2,000 units in inventory. The sales budget this year is for 24,000 units, but since they sell more in January than any other month, they would like to end the year with 6,000 widgets in their finished goods inventory. How many units should the production department budget to make to end with the appropriate inventory?
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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