Rak Sarang Corporation expects to sell 5,000 units in the first year, followed by a 300-unit increment in subsequent quarters. The company believes that by retaining an ending inventory equivalent to 15% of the next quarter's anticipated sales volume, it can satisfy future sales requirements. Based on a sales price of P150 per unit: a. Prepare the Sales Budget (For the year 2022). b. Prepare the Production Budget (For the year 2022).
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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