Krier Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 42,600 units during the upcoming year. In the past, management has maintained inventories of finished goods at approximately 3 months' sales. However, the estimated inventory at the start of the year of the budget period is only 7,100 units. Sales occur evenly throughout the year. What is the estimated production level (units) for the first month of the upcoming budget year? Multiple Choice 14,200. 10,650. 7,100. 3,550.
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.
Krier Industries has just completed its sales
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14,200.
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10,650.
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7,100.
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3,550.
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