Question
What is budget? Give an example of a sales budget.
Solution
Budget describes the desired results in numerical terms. It can be understood with the help of following diagram:
Sales Budget
(For the Year Ending Dec., 31, 2012)
|
Product |
Area |
Sales (in Units) |
Selling Price |
Total Sales |
|
X |
East Zone West Zone North Zone South Zone |
50,000 1,00,000 80,000 40,000 |
20 20 20 20 |
10,00,000 20,00,000 16,00,000 8,00,000 |
|
Total |
54,00.000 |
|||
|
Y |
East Zone West Zone North Zone South Zone |
1,00,000 2,00.000 1,00,000 3,00,000 |
30 30 30 30 |
30,00,000 60,00,000 30,00,000 90,00,000 |
|
Total |
2,10,00,000 |
|||
