What is the peso value that best quantifies the marketing division's failure to achieve budgeted performance for the current year?
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 Success Corporation has a normal capacity of 2,000,000 units. The current year's budget was based on the production and sales of 1,400,000 units. Actual statistics came out to be: production of 1,440,000 units and sales of 1,200,000 units. Selling price is at P20 per unit and the contribution margin ratio is 30%. What is the peso value that best quantifies the marketing division's failure to achieve budgeted performance for the current year?
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