[The following information applies to the questions displayed below.] We discuss how budgeting for a merchandiser is different than budgeting for a manufacturer. Merchandising firms prepare a merchandise purchases budget instead of a production budget. All of the other budgets prepared by a merchandiser are similar to those of a manufacturing firm. Knowledge Check 01 Cobra, Inc., a sporting goods retailer, estimates to sell 50,000 units in the next quarter. The beginning inventory is 4,000 units and ending inventory is estimated to be 20 percent of estimated sales. How many units should be purchased?
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.
[The following information applies to the questions displayed
below.]
We discuss how budgeting for a merchandiser is different than
budgeting for a manufacturer. Merchandising firms prepare a
merchandise purchases budget instead of a production budget. All
of the other budgets prepared by a merchandiser are similar to
those of a manufacturing firm.
Knowledge Check 01
Cobra, Inc., a sporting goods retailer, estimates to sell 50,000 units in the next
quarter. The beginning inventory is 4,000 units and ending inventory is estimated to
be 20 percent of estimated sales. How many units should be purchased?
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