In comparison to static budgets, flexible budgets: Offer managers a more realistic comparison of budget and actual fixed cost items under their control Encourage managers to use fewer fixed cost items and more variable cost items that are under their control. Provide a better understanding of the capacity variances during the period being evaluated. Offer managers a more realistic comparison of budget and actual revenue and cost items under their control.
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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