he following information has been accumulated by budget department for future sales and production requirements: Expected Sales for 2010 Product Sales (units) Price (Rs.) Expected Inventories for Jan. 01, 2010 Desired Inventories for Dec. 31, 2010 X 30,000 50 10,000 units 12,000 units Y 50,000 60 15,000 20,000 units Z 30,000 70 7,000 8,000 units Required 1. Sales budget in rupees 2. Production budget in quantities
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.
The following information has been accumulated by budget department for future sales and production requirements:
|
Expected Sales for 2010 |
|||||
|
Product |
Sales (units) |
Price (Rs.) |
|
Expected Inventories for Jan. 01, 2010 |
Desired Inventories for Dec. 31, 2010 |
|
X |
30,000 |
50 |
|
10,000 units |
12,000 units |
|
Y |
50,000 |
60 |
|
15,000 |
20,000 units |
|
Z |
30,000 |
70 |
|
7,000 |
8,000 units |
Required
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