collected for the year 2019. Monthly demand of X, 15,000 units Cost of placing an order OMR 100 Annual carrying cost per unitOMR 150 Normal usage 600 units per week Maximum usage 850units per week 350 units per week Minimum usage Reorder period 4 to 6 weeks Compute from the above: (a) Reorder quantity, (b) Reorder level, (c) M Maximum level, and (e) Average stock level.
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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