Production budget is prepared based on sales target. It is useful for preparing other operating budgets. PAG Company had 3,000 units in Finished Goods Inventory on December 31. Following is a partial Production Budget for January to March. March 9,800 2,000 January Units to be started 9,400 Desired ending 2,500 inventory February 10,200 2,100 How many units does the company expect to sell in January? a. some other figure not listed here b. 8,900 c. 9,400 d. 9,900 e. 11,900
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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