GC Pharma is engaged in the manufacturing of medicine. The company has decided to produce 10000 medicine in the year 2021 for which the company has defined the budget of Rs.1,90,000 at the beginning of the year. Still, at the end of the year, it has noticed the actual cost incurred for the production is Rs.1,95,000. There is an excess expenditure of Rs.5000 over-budgeted expenditure. Kindly suggest – Which responsibility manager has to explain excess expenditure of Rs. 5000 and also Explain the components of Responsibility Accounting.
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.
GC Pharma is engaged in the manufacturing of medicine. The company has decided to produce 10000 medicine in the year 2021 for which the company has defined the budget of Rs.1,90,000 at the beginning of the year. Still, at the end of the year, it has noticed the actual cost incurred for the production is Rs.1,95,000.
There is an excess expenditure of Rs.5000 over-budgeted expenditure. Kindly suggest –
Which responsibility manager has to explain excess expenditure of Rs. 5000 and also Explain the components of Responsibility Accounting.
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