The technical company ABC undertakes the construction of a bridge for 12,000 euros. All purchases are made in cash and there are no end-of-year stocks. The receipts and expenditure budget is given immediately below: Period Receipts Expenditures 1st 1,800 2,000 2nd 2,400 3,000 3rd 5,400 5,000 4th 2,400 - Total 12,000 10,000 The project is completed in period 3. Requested: Recovery of costs
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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The technical company ABC undertakes the construction of a bridge for 12,000 euros.
All purchases are made in cash and there are no end-of-year stocks.
The receipts and expenditure budget is given immediately below:
Period Receipts Expenditures
1st 1,800 2,000
2nd 2,400 3,000
3rd 5,400 5,000
4th 2,400 -
Total 12,000 10,000
The project is completed in period 3.
Requested: Recovery of costs
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