Gentlemen Company expects the total costs of goods sold to be $43,000 in November and $73,000 in December for one of its young adult suits. Management also wants to have on hand at the end of each month 20 percent of the expected total cost of sales for the following month. What dollar amount of suits should be purchased in November?
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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