DUBAI Manufacturing has established the following master flexible budget: Sales in Units 150,000 Sales Less variable expenses: Raw materials Direct labor Manufacturing overhead Selling and administrative 100,000 $1,600,000 $2,400,000 200,000 300,000 250,000 375,000 175,000 262,500 100,000 150,000 200,000 $3,200,000 400,000 500,000 350,000 200,000
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. Prepare the flexible budget.
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