SADCO Consulting Firm has the following budget for 20 Revenues Direct costs $25,000,000 Indirect costs 8,000,000 14.000.000 Net Operating Income 3,000,000 SADCO has a single direct cost exemplified by professional comsutarts, which stae as an allocation base. A markup of 14% is used for pricing the assigned pob SADCO bidding on a consulting job for Ajman University. The required professional consutation could be categorized as follows Professional Category Budgeted Rate per Hour Budgeted Houn Category A $200 10 hours 12 150 Category B 100 Category C 180 75 Category D Required: (A) Compute the budgeted indirect cost rate (B) How much will SADCO bid for the job? (C) What would be the case if the markup is taken as 10% of the revenue
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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