Prepare a flexible budget for the production of 50%, 80% and 100% activity on the basis of the following information. Production at 50% Capacity Raw Material Direct Labor Direct Expenses Factory Expenses Administration Expenses 8,000 Units RO 55 per unit RO 70 per unit RO 25 per unit RO 70,000 (70 % fixed) RO 60,000 (40% Variable)
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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