The expenses budgeted for production of 10000 units in a factory are furnished below: Particulars Amount in Rs per unit. Materials 280 Labour 100 Variable overheads 80 Fixed overheads (Rs.400000) 40 Variable expenses (Direct) 20 Selling expenses (10% fixed) 52 Distribution expenses (20% fixed) 28 Administration expenses (Rs.200000) 20 Total 620 Prepare a flexible budget to produce 10000 units and 20000 unit
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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