HyperNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $125 for each connector and fixed costs of $5,000 per month. HyperNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 73 connectors at a total cost of $22,000. HyperNet's flexible budget variance for total costs is OA. $3,375 F. B. $7,875 F. OC. $3,375 U. OD. $7,875 U. .....
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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