Prepare flexible budget from the following information of Ford health care organisation-currently the organisation is operating at 70% capacity but the management wants to know what it will be effect if activity is reduced to 60% and increased to 80%. Fixed cost- Rent-50000$ Maintenance -25000$ Variable cost- Surgical Materials-35000$ Nursing Labour-15000$ Semi-variable cost- Repairs -10000$(75% fixed-25%variable)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Prepare flexible budget from the following information of Ford health care organisation-currently the organisation is operating at 70% capacity but the management wants to know what it will be effect if activity is reduced to 60% and increased to 80%.
Fixed cost-
Rent-50000$
Maintenance -25000$
Variable cost-
Surgical Materials-35000$
Nursing Labour-15000$
Semi-variable cost-
Repairs -10000$(75% fixed-25%variable)
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