Question 5 Witherspoon Inc. has compiled the following data in order to put together their first quarter operating budget for 20xx Sales (units) January Required: 55,000 February 48.000 March 41,000 April 37,000 Additional information: Witherspoon sells each unit for $95. Company policy is to have 30% of next month's sales (in units) in ending finished goods inventory. This policy was met in December.
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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