Q4. Annual cost of carrying a unit Tk 15 And ordering costs per order Tk 500 Time Required for delivery 3 to 6 weeks Weeks consumption: Maximum consumption 1800 Units Normal Consumption 1100 Units Minimum Consumption 700 Units Lead time for emergency purchase 2 weeks, Total working 52 weeks Required: (i)Re-order Level (ii) Maximum stock Level (iii)Minimum stock level (iv) Average stock level (v) Danger level
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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