The following information pertains to E Company, Budgeted sales -P1,000,000. Break even sales P700,000, budgeted contribution margin P600,000. The margin of safety for the E Company is a. P400,000 b. P500,000 c. P600,000 d. P300,000
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 pertains to E Company, Budgeted sales -P1,000,000. Break even sales P700,000, budgeted contribution margin P600,000. The margin of safety for the E Company is
P400,000
P500,000
P600,000
P300,000
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