The industrial enterprise "HPSO" shall budget the unit cost data for production and sale of 20,000 units per month as follows: Direct materials used EUR 34 Direct labour EUR 22 Variable industrial overheads EUR 14 Fixed industrial overheads EUR 8 Variable disposal costs EUR 2 Fixed disposal costs EUR 3 Estimated costs EUR 83 The fixed industrial overheads per unit for a total monthly production of 10 000 units will be (amounts in EUR): α. 18 β. 16 γ. 14 δ. 12
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 industrial enterprise "HPSO" shall budget the unit cost data for production and sale of 20,000 units per month as follows:
Direct materials used EUR 34
Direct labour EUR 22
Variable industrial
Fixed industrial overheads EUR 8
Variable disposal costs EUR 2
Fixed disposal costs EUR 3
Estimated costs EUR 83
The fixed industrial overheads per unit for a total monthly production of 10 000
units will be (amounts in EUR):
α. 18
β. 16
γ. 14
δ. 12
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