If you have determined that you are going to sell 15 500 units at R35/unit for next month. Determine the expected cash collection if 25% will be cash and 75% will be on credit. The credit sales will be collected as follows: 45% in the month following the purchase (30 days), 35% in the next month (60 days) and 20% in the following month (90 days). (5) It takes two hours of labour per unit at an average wage of R13 as hour to make a product at FMH (Pty) Ltd. Complete a labour budget for FMH (Pty) Ltd.
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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