The director of the art department at an advertising company, Wilson Watson, wants to hire a new office staff. His boss tells him that to do so he must find in his budget not only the base salary for this position but an additional 30% for “fringe benefits.” Wilson explodes: “How in the world can there be 30% in fringe benefits?” Write a memo to Wilson Watson explaining the costs that probably make up these fringe benefits.
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.
The director of the art department at an advertising company, Wilson Watson, wants to hire a new office staff. His boss tells him that to do so he must find in his budget not only the base salary for this position but an additional 30% for “
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