Jarziz Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 25000 units and determined the selling price as 40 OMR per unit. The management revised these estimates with a 20 % increase in selling price and with a 25 % decrease in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)?
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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