Tower Company produces and sells two products; B740 and C740. The company estimated the sales of the products as 45000 units for B740 and 35000 units for C740. The opening stock and estimated closing stock units are given in the table below. B740 C740 Opening Stock 12000 14000 Closing Stock 7000 9000 Which of the following shows the number of units to be produced in the Production Budget. Select one: a. B740 = 51000 and C740 = 41000 b. B740 = 40000 and C740 = 30000 c. B740 = 42500 and C740 = 32500 d. B740 = 49000 and C740 = 39000
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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