Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product Y Z Units produced Per unit sales value at split-off Allocated costs at split off Added processing costs per unit Per unit sales value if processed further 4,500 6,000 4,000 $25.00$26.00$28.00 $9.00$10.00$16.00 $8.00 $8.00 $8.00 $30.00$30.00$30.00 The raw material relating to getting these units to split off is $250,000. Which of the products should be processed beyond the split-off point? O A. Product Y no no no O B. Product Y yes yes Product no Oc. Y yes Product no yes OD. no yes no O E. Product Y yes yes no
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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