1. Bucks Company desires an ending inventory of P62,000 and a beginning inventory of P55,000. Gross profit is estimated to be 25% of sales. The expected sales amounted to P320,000. Budgeted purchases would amount to a. P230,000 b. P240,000 c. P247,000 d. P370,000
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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