MajorNet Systems makes connectors for high-speed internet connections. The company has budgeted variable costs of $145 for each connection and fixed costs of $7,500 per month. MajorNet's static (master) budget predicted the production and sales of 100 connections in August, but the company actually produced and sold only 90 connections at a total cost of $21,000. MajorNets flexible budget variance for the total cost is: Select one: a. $450 U b. $450 F c. $1,320 U d. $1,320 F
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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