The property value is RM2,000,000 and the expected loss for the property is RM40,000.The maximum loss for the property similar as the property value and the risk was RM980,000. If the investment return of the company was 16%, and the bank interest was 8%.   You are required to calculate :   i Cost of financing loss     ii Cost of financing risk   iii Cost of retention

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.