RelyaTech Corporation is planning its annual budget and has the following beginning and ending inventory levels planned for the year. Beginning Ending Inventory 20,000 Inventory 30,000 50,000 40,000 Finished goods (units) Raw material (grams) (ID#87731) Each unit of finished goods requires 2 grams of raw material. RelyaTech plans to sell 150,000 units during the year. Q) How much of the raw material should RelyaTech purchase during the year?
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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