Shoeco sell shoes and has the following information for February 2020. The budget was created in December 2019. Budgeted info: Sales= 2,000 units at $80 each; VC = $13.50 per unit; FC = $40,000 Actual info: Sales = 2,450 units at $54.50 each; VC = $19 per unit; FC = $36,000 Create CFISes for the Static Budget, the Flexible Budget, and for February’s actual results. Calculate the relevant variances.
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.
- Shoeco sell shoes and has the following information for February 2020. The budget was created in December 2019.
- Budgeted info: Sales= 2,000 units at $80 each; VC = $13.50 per unit; FC = $40,000
- Actual info: Sales = 2,450 units at $54.50 each; VC = $19 per unit; FC = $36,000
- Create CFISes for the Static Budget, the Flexible Budget, and for February’s actual results. Calculate the relevant variances.
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