Waterway Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2022. the following data are available 1. Sales: 20,400 units quarter 1: 22.440 units quarter 2. 2 Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3% Fixed costs per quarter: sales salaries $12.240, office salaries $8.160, depreciation $4,240, insurance $1,530, utilities $860, and repairs expense $510 Unit selling price: $20. 3. 4
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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