The Year 1 selling expense budget for Apple Corporation is as follows. Miscellaneous expenses are mixed costs that include fixed costs of $2,000. The rest of miscellaneous expenses vary proportionately with budgeted sales in dollars. The budgeted sales for Year 2 are $330,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget? Budgeted sales $275,000 Selling costs: Delivery expenses Commission expenses Advertising expenses Office expenses Miscellaneous expenses Total $5,960 $4,200 $3,600 $6,200 $2,750 5,500 2,500 1,500 5.300 $ 17,550
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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