Power and utility cost to be allocated to SLIM is:
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.
Rane and Co manufactures eight types of milk chocolates and candies. Power and utility costs are allocated based on material costs. For the month of June, the budgeted power and utility cost is Rs. 15 lakhs and material consumption is Rs. 180 lakhs. Actual power and utility is Rs.16 lakhs and actual material consumed is Rs. 180 lakhs. Material cost for one of the milk bar “SLIM” is Rs. 24. Power and utility cost to be allocated to SLIM is:
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