QUESTION 8 Planet of the Crepes, Inc. is preparing its master budget in its first month of business. It expects to sell 4,000 crepes at $3 per crepes per month. It expects to collect 80% of the sales in the month of the sale and 20% in the following month. How much revenue will be collected in the second month? $12,000 $9,600 Ⓒ$10,000 $2,400 $9,000

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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.