The Willsey Merchandise Company has budgeted $45,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $22,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is? A. $8,500 Increase B. 9.500 Decrease C. 16,350 Increase D. 23.000 Decrease
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.
The Willsey Merchandise Company has budgeted $45,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $22,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is?
A. $8,500 Increase
B. 9.500 Decrease
C. 16,350 Increase
D. 23.000 Decrease
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