Management believes it has found a more efficient way to package its products and use less cardboard This new approach will reduce shipping costs from $2.00 per shipment to $1.42 per shipment. (1) If the company budgets 2,000 shipments this year, what amount of total direct materials costs would appear on the shipping department's flexible budget? (2) How much is this sustainability improvement predicted to save in direct materials costs for this coming year 1. Budgeted direct materials 2. Cost savings
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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