Budgetary Control Question:
What things are considered before preparing a purchase budget?
Answer:
Following points are required to be considered before preparing the purchase budget:
-Opening and Closing balances of stocks
-Materials purchased and reserved for specific purpose
-Orders already placed
-Quantity required by the production
-Prices of materials.
-Storing facilities and Economic order quantity.
-Availability of funds
-Opening and Closing balances of stocks
-Materials purchased and reserved for specific purpose
-Orders already placed
-Quantity required by the production
-Prices of materials.
-Storing facilities and Economic order quantity.
-Availability of funds
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