Sunset Motors, Inc., makes small motors for appliances and other uses. The company develops plans using an annual budgeting cycle. For next year, the production budget is 88,000 units. Inventories are expected to decrease by 5,000 units. Required: What is the sales budget for the coming year? Sales budget in 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.
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