SELLING AND ADMINISTRATIVE EXPENSE BUDGET SELLING AND ADMINISTRATIVE For the year 2015, the following data are developed by Mariel Corporation for the purpose of preparing the selling and administrative expense: Sales 45,000 units P 10 Unit selling price Variable cost per unit of sale Sales commissions 5% Delivery expense Advertising Supplies 2% 10% 1% Fixed cost P 20,000 15,000| 10,000 Sales salaries Office salaries Depreciation expense Insurance 5,000 Utilities 7,500 Prepare a selling and administrative expense budget for the year 2015 *
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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