Marco, Inc., has budgeted sales in units for the next four quarters as follows: Quarter Production in units First Second Third Fourth 10,000 12,000 16,000 14,000 Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarter's sales in units. The company needs to prepare a production budget for the next four quarters. The total number of units produced in the second quarter should be:
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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