why is the sales budget considered the cornerstone of the master budget?
why is the sales budget considered the cornerstone of the master budget?
Homework Answers
The Cornerstone of the budgeting process is the sales budget because the usefulness of the entire operating budget depends on it. The level of sales affects almost all of the other elements of the master budget. The sales budget involves estimating or forecasting how much demand for the product exists, which anyone needs for making other budgets.
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why is the sales budget considered the cornerstone of the master
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The sales budget is considered the cornerstone of the master budget because O A. the level...
The sales budget is considered the cornerstone of the master budget because O A. the level of sales affects almost all of the other elements of the master budget. O B. it plays a minor role in the preparation of the operating budget. O c. it determines the amount of materials to purchase for production. OD. it is prepared last and summarizes all of the other elements of the budget.
The sales budget is the starting point for the master budget. Discuss how it is prepared....
The sales budget is the starting point for the master budget. Discuss how it is prepared. Why is its accuracy so important?
The sales budget is the starting point for the master budget. Discuss how it is prepared....
The sales budget is the starting point for the master budget. Discuss how it is prepared. Why is its accuracy so important? View Instructor posts
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue...
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
OBJECTIVE CORNERSTONE 8.2 Cornerstone Exercise 8.2 Production Budget Refer to Cornerstone Exercise 8.1...
OBJECTIVE CORNERSTONE 8.2 Cornerstone Exercise 8.2 Production Budget Refer to Cornerstone Exercise 8.1, through Requirement 1. Flash Kick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: I. Construct a production budget for each of the two product lines for Flash Kick Company for the first three months of the coming year. 2. What if Flash Kick wanted a...
Is a budget system typically begins with sales budget or master budget? for accounting.
Is a budget system typically begins with sales budget or master budget? for accounting.
CORNERSTONE EXERCISES Cornerstone Exercise 8.1 Sales Budget Flash Kick Company manufactures and sells soccer balls for...
CORNERSTONE EXERCISES Cornerstone Exercise 8.1 Sales Budget Flash Kick Company manufactures and sells soccer balls for teams of children in elementary and high school, Flash Kick's best-selling lines are the practice ball line (durable soccer balls for (continued) Units 7,000 January February Units 50,000 58,000 80,000 100,000 Selling Price 58.75 58.75 $8.75 58.75 7.500 Selling Price S16,00 $16.00 $16.00 $16.00 March April 13,000 18,000 Required: 1. Construct a sales budget for Flash Kick for the first three months of the...
why the material master is considered a complex type of data in an ERP system compared...
why the material master is considered a complex type of data in an ERP system compared to other master data? with example of data in a material master.
Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 13,000 ? 2,000...
Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 13,000 ? 2,000 U ? Sales revenue ? 13,000 F ? ? ? Less: Variable mfg. costs $ 87,750 $ 91,000 ? $ 105,000 Variable mktg/adm.costs ? $ 3,250 U ? $ 4,000 F 30,000 Contribution margin $ 52,000 ? ? $ 6,000 U ? What is the master budget sales revenue?
11. Principal components of a master budget include a. production budget b. sales budget C. capital...
11. Principal components of a master budget include a. production budget b. sales budget C. capital expenditures budget d. All of these choices
The sales budget is considered the cornerstone of the master budget because O A. the level of sales affects almost all of the other elements of the master budget. O B. it plays a minor role in the preparation of the operating budget. O c. it determines the amount of materials to purchase for production. OD. it is prepared last and summarizes all of the other elements of the budget.
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
OBJECTIVE CORNERSTONE 8.2 Cornerstone Exercise 8.2 Production Budget Refer to Cornerstone Exercise 8.1, through Requirement 1. Flash Kick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: I. Construct a production budget for each of the two product lines for Flash Kick Company for the first three months of the coming year. 2. What if Flash Kick wanted a...
CORNERSTONE EXERCISES Cornerstone Exercise 8.1 Sales Budget Flash Kick Company manufactures and sells soccer balls for teams of children in elementary and high school, Flash Kick's best-selling lines are the practice ball line (durable soccer balls for (continued) Units 7,000 January February Units 50,000 58,000 80,000 100,000 Selling Price 58.75 58.75 $8.75 58.75 7.500 Selling Price S16,00 $16.00 $16.00 $16.00 March April 13,000 18,000 Required: 1. Construct a sales budget for Flash Kick for the first three months of the...
11. Principal components of a master budget include a. production budget b. sales budget C. capital expenditures budget d. All of these choices
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