Q # 2 The following information has been accumulated by budget department for future sales and production requirements: Expected Sales for 2010 Product Sales (units) Price (Rs.) Expected Inventories for Jan. 01, 2010 Desired Inventories for Dec. 31, 2010 X 30,000 50 10,000 units 12,000 units Y 50,000 60 15,000 20,000 units Z 30,000 70 7,000 8,000 units Required
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.
Q # 2
The following information has been accumulated by budget department for future sales and production requirements:
|
Expected Sales for 2010 |
|
||||
|
Product |
Sales (units) |
Price (Rs.) |
|
Expected Inventories for Jan. 01, 2010 |
Desired Inventories for Dec. 31, 2010 |
|
X |
30,000 |
50 |
|
10,000 units |
12,000 units |
|
Y |
50,000 |
60 |
|
15,000 |
20,000 units |
|
Z |
30,000 |
70 |
|
7,000 |
8,000 units |
Required
- Sales budget in rupees
- Production budget in quantities
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