Zain company has a bottling plant for its drinks and has prepared flexible budgets: Flexible budgets Bottles: Production costs: Materials Labor Maintenance 15,000 $ 75,000 45,000 25,000 Instructions: 18,000 $ 90,000 54,000 25,000 22,000 $ 110,000 66,000 25,000 Actual production was 19,500 bottles and the production costs incurred totalled $120,000. What is the meaningful total variance for performance evaluation purposes?
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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