Verdi plc's budget for the first month of trading, during which production of 3,000 units and sales of 2,700 units are predicted, is as follows: Variable productions costs £136, 000; Fixed production costs £102, 500; Selling price is £500 per unit. The profit calculated on the absorption cost basis compared to the marginal cost basis will be? a) £10, 250 lower b ) £10, 250 higher c) £13, 600 higher d) £13, 600 lower
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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