Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Raw material (grams) Each unit of finished goods requires 3 grams of raw material. The company plans to sell 630,000 units during the year. Multiple Choice The number of units the company would have to manufacture during the year would be: O 630,000 units 708,000 units Beginning Inventory 28,000 58,000 572,000 units Ending Inventory 78,000 48,000 680,000 units
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.
A budget is a management tool, wherein the goals and objectives of the organization are quantified in monetary terms. A budget is thus a financial statement that contains the expected income and expenditures of an organization for a future period of time. Annual budgets refer to the budgets that are prepared for an entire accounting period. Moreover, budgets can also be prepared on a monthly or quarterly basis. Budgets form the basis against which the performance for a particular period is evaluated and necessary action is taken in case of variances and deviations.
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