With the following data for a 60% capacity, prepare a budget for production at 80% and 100% activity. Production at 60% activity 600 units materials Rs. 100 per unit (100% variable) Materials Rs. 40 per unit (100% variable) Labours Rs. 40 per unit (100% variable) Direct Expenses Rs. 10 per unit (Rs. 6 per unit fixed) Factory expenses Rs. 40,000 (40% fixed) Administrative expenses Rs. 30,000 (60% fixed)
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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