The following are budgeted data: Sales in units Production in units Multiple Choice O One pound of material is required for each finished unit. The inventory of materials at the end of each month should equ 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: O 20,375 pounds 20,125 pounds 19,625 pounds January 16,000 19,000 18,375 pounds February 22,000 20,000 March 19,000 18,500
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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