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Essay: 1. Do micro, small and medium businesses need a budget? Please Explain your opinion! 2. Can the company apply two methods or types of

Essay:

1. Do micro, small and medium businesses need a budget? Please Explain your opinion!

2. Can the company apply two methods or types of budgeting at the same time in the company? Please explain your opinion!

3. Does sales in excess of the budget always have a bad impact? What is the effect if unit sales rise in large quantities and what is the relationship with the company's variable cost?

Case:

The Bainder Company has budgeted its popular Binder sales for the next four months as follows:

Sales in Units

April120,000

May140,000

June160,000

July65,000

The company is currently in the process of preparing a production budget for the second quarter. Then experience shows that the end-of-month inventory level must equal 10% of the next month's sales. Inventories at the end of March are 10,000 units.

Question:

Please explain how to make it

Need to make a production budget for the second quarter; in your budget, indicate the number of units to be produced each month and for the quarter total.

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