Given below is an excerpt from a management performance report: Budget Actual Difference Contribution margin $500000 $450000 $50000 U Controllable fixed costs $100000 $140000 $40000 U The manager’s overall performance
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.
Given below is an excerpt from a management performance report:
|
|
Budget |
Actual |
Difference |
|
Contribution margin |
$500000 |
$450000 |
$50000 U |
|
Controllable fixed costs |
$100000 |
$140000 |
$40000 U |
The manager’s overall performance
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