Suppose, for example, that an 80% learning curve applies to production of item ABC. To date (the end of June) 230 units of ABC have been produced. Budgeted production for July is 55 units. The time taken to produce the very first unit of ABC, in January, was 120 hours. Required Calculate the budgeted total labour time for July.
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.
Step by step
Solved in 2 steps
