Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below. Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) Revenue ($440.009) Expenses: Wages and salaries ($11,500 + $122.009) Supplies ($6.009) Equipment rental ($2,500+ $23.009) Insurance ($4,000) Miscellaneous ($510 + $1.48q) Total expense Net operating income 350 $ 154,000 54,200 2,100 10,550 4,000 1,028 71,878 $ 82,122 During May, the company's actual activity was 340 diving-hours.
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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