In a period, a company had inventory of 31,000 units of product G and closing inventory of 34,000 units. Profits based on marginal costing were $ 850,500 and profits based on absorption costing were $ 955,500. If the budgeted fixed costs for the company for the period were $ 1,837,500, what was the budgeted level of activity? 24,300 units 27, 300 units 52,500 units 65,000 units
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.
In a period, a company had inventory of 31,000 units of product G and closing inventory of 34,000 units. Profits based on marginal costing were $ 850,500 and profits based on absorption costing were $ 955,500. If the budgeted fixed costs for the company for the period were $ 1,837,500, what was the budgeted level of activity?
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