Sun Valley showed the following on its direct materials budget for May: Units to be produced 62,500 Total kilos needed for production 5,000 Total kilos of materials to be purchased 7,500 The materials cost P2.50 per kilo. How much is the cost of direct materials per unit? • Cost of Direct Materials per Unit = Materials Cost x Total kilos needed for production / Units to be produced a. Php 0.20 Ob. Php 0.30 O c. Php 8.33
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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