Budgeted sales in units are as follows: Jan is 35,000; Feb is 26,000 and March is 32,000. The company’s policy is to have ending inventory of 10% of the following period’s sales. What quantity of production be schedule for February?
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.
Budgeted sales in units are as follows: Jan is 35,000; Feb is 26,000 and March is 32,000. The company’s policy is to have ending inventory of 10% of the following period’s sales. What quantity of production be schedule for February?
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