Miller optometry is considering the purchase of a new lens grinder to replace a machine that was purchased several years ago. Selected information on the two machines is given below: Old Machine New Machine Original cost when new ............ P80,000 P85,000 Accumulated depreciation to date .. 32,000 ­­­ Selling price of old machine..... 26,000 ­­­ Annual operating cost ............. 4,000 3,000 Remaining useful life ............. 4 years 4 years

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Q: Rahul

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.