Analyzing the Master Budget Simulation.

A. An increase in gross revenue does not unavoidably cogitate that there is a rise in stuff and nonsense or working class cost. We must know what the roll level is at the particular time of the rise in sales. If the inventory levels do not permit or co-occur with the sales figures, we rear end assume that there is several(prenominal) rise in trus tworthy be; such as guide on labor. The rise in costs would be direct labor depending on what the output or the maximum skill rating (MCR). If the increase in sales rises, is the company equal to(p) to produce these products in the frequent time? On the different hand, must they work extra time to adjust for the sales increase? In the case of Salud Foods, the sales increased $450,000; which inevitably led to an increase in labor by 20%. B. The financial managers task is to forecast rising sources and uses of money. These forecasts serve two purposes. First, they alert the financial manager to proximo cash needs. Second, the cash flow forecasts provide a standard, or a figure, against which later(prenominal) performance can be judged (Brealey, Myers, and Marcus). The the true in the budgeting bear upon is only as good as the forecaster learning provided.

As with the Salud Foods company, they had at least common chord stack involved in the budgeting decisions, who were all from different divisions so that we could go through fair concise input to the accuracy of the budget. C. A Companys budget can be hidden from certain costs if the mean and forecasting took into account some of the issues that may make mother during a certain period. Example with Salud Foods, their sales in creased, they k! new this tip of time and had to budget for that issue. Some of the issues that they did not count on was the... If you want to get a full essay, order it on our website: BestEssayCheap.com

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