Analyzing the Master Budget Simulation.

A. An increase in gross revenue does not necessarily cogitate that there is a rise in fabric or working class cost. We must know what the stock-taking level is at the particular time of the rise in gross sales. If the inventory levels do not permit or assent with the sales figures, we rear end assume that there is more or less rise in trus dickensrthy be; such as look labor. The rise in costs would be direct labor depending on what the output or the maximum capacitor rating (MCR). If the increase in sales rises, is the company sufficient to produce these products in the frequent time? On the separate hand, must they work extra time to adjust for the sales increase? In the case of Salud Foods, the sales increased $450,000; which unavoidably led to an increase in labor by 20%. B. The financial managers task is to forecast rising sources and uses of exchange. These forecasts serve two purposes. First, they alert the financial manager to proximo cash needs. Second, t he cash flow forecasts provide a standard, or a work out, against which subsequent performance can be judged (Brealey, Myers, and Marcus). The the true in the budgeting military operation is only as good as the forecaster info provided. As with the Salud Foods company, they had at least common chord heap involved in the budgeting decisions, who were all from different divisions so that we could discover fair concise input to the accuracy of the budget. C. A Companys budget can be hidden from certain costs if the plan and forecasting took into account some of the issues that may make go up during a certain period. Example with Salud Foods, their sales in creased, they knew this take 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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