IE Exercise 23-3 (Static): Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000 units x $400 per unit) $2,800,000 Costs Direct materials Direct labor Indirect materials 280,000 490,000 175,000
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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