You are assisting the management accountant with sales forecast of two brands – Y and Z – for the next three quarters of 2019. Brand Y has a steady, increasing trend in sales of 2% a quarter and Brand Z a steadily falling trend in sales of 3% a quarter. Brand Y are subject to seasonal variations as a proportion to the sales units as follows: Quarter 1 2 3 4 Seasonality -30% 0% -30% 60% Brand Z however is subject to seasonal variations in sales units as follows Quarter 1 2 3 4 Seasonality (in sales unit) -112 10 -70 172 The last four quarters unit sales are shown below: 2018 Q2 2018 Q3 2018 Q4 2019 Q1 Brand Y 331 237 552 246 Brand Z 873 593 1,314 558 Required Produce sales forecast for the remaining three quarters of 2019 for each brand.
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.
You are assisting the
Brand Z however is subject to seasonal variations in sales units as follows Quarter 1 2 3 4 Seasonality (in sales unit) -112 10 -70 172
The last four quarters unit sales are shown below: 2018 Q2 2018 Q3
2018 Q4
2019 Q1 Brand Y 331 237 552 246 Brand Z 873 593 1,314 558
Required
Produce sales forecast for the remaining three quarters of 2019 for each brand.
Sales forecast for Brand Y:
Formulation:
Sales Forecast for Brand Z:
Formulation:
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