Whiz Calculator Company Sales Budget

Whiz Calculator Company Sales Budget

Length: 1049 words (3 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Whiz Calculator Company

Sales budget is the most important budget while making the overall budget for the organization for a particular fiscal year.

It is important in the sense that how would anybody make fiscal budget for organization if he don't know about how much to sale or what are the organization's sale would be???

If you knew the sales volume or units of product you want to sale in a particular fiscal year then you will make production budget accordingly & similarly you will purchase raw material & hire labor to meet requirements.

So if you don't know how much you want to sale then how would you budget other things and how would you compare your performance at the end of fiscal year???


Whiz Calculator Company is currently considering the new method of planning and controlling selling cost. The old method was unsatisfactory according to Mr. Reisman.

According to old method, selling expenses were budgeted on a fixed or appropriation basis. Each October, the accounting department sent records of actual expenses for the preceding year and for the current year - to - date, to the branch managers and to other managers who in charge of selling departments.

Looking into the preceding year’s report & by their judgment, these department heads drew up and submit estimates of the expenses for their departments for the succeeding year.

Then the estimates made by the branch managers were sent to the sales manager, who was in charge of all branch sales. He determined whether or not they were reasonable and cleared up any questionable items by correspondence.

Upon the approval by the sales manager, the estimates of branch expenses were submitted to the manager of marketing (Paula Melmad), who was in charge of all selling, promotional, and warehousing activities.

 Then the manager of marketing discussed these numbers with the managers concerned, and after differences were reconciled, the estimates of all selling departments were combined into selling expense budget.

 Lastly budget was submitted to the budget committee for final approval.

 These budgeted figures were divided into 12 equal amounts and compared to each month actual results. (Pg No. 171)

 In the new president’s point of view there were two limitations of the old method. Firstly, there was no 100% confidence in reasonableness of the estimates made by department heads. Secondly, selling conditions changed substantially after the budget was adopted, however under the old method it was impossible to modify the budgeted expenses for these changes.

How to Cite this Page

MLA Citation:
"Whiz Calculator Company Sales Budget." 123HelpMe.com. 15 Dec 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Steve Jobs' Life and Accomplishments Essay

- Steve Paul Jobs was born in San Francisco, California on February 24th born to Joanne Schieble, and Abdulfattah Jandali. Both of them were graduates of the University of Wisconsin. Unfortunately, they gave the unnamed (Steve) son up for adoption. His father, Abdulfattah Jandali, was a Syrian political science professor and his mother, Jonne Schieble worked as a speech therapist. Later after they gave Steve up for adoption the married couple had another child, Mona Simpson. It was not until Steve was 27 years old....   [tags: apple company, ibm, steve wozniak, apple 2]

Research Papers
1341 words (3.8 pages)

Lowering The Prices Of The Product Will Increase The Sales And Revenue Of A Company

- It is reasonable to assume that lowering the prices of the product will increase the sales and revenue of a company. But is it really so. Here in this article we are trying decipher and find whether lowering the prices strategy work in the real world or not. To decipher the real outcome of this strategy we have to understand the basic human nature and behaviour. Consider the situation in which a customer is presented with three watches. One is priced at $100, the second one is priced at $500 and the third one is priced at $1500....   [tags: Price, Marketing, Sales, Competition]

Research Papers
876 words (2.5 pages)

Improving The Profit Of Company Through A Small Calculator Essay

- 3. Improve The Profit Of Company Through This Calculator If you work with a company, you can try to improve the profit of it through a small calculator. The main thing to know about your company is, whether the structured settlement is worth or not. The value of structured settlement relies on several factors. In order to calculate it, you should consider various things such as, • Dollar amount of your payments • Number of remaining payments • Sum payments A simple settlement calculator is used to sell payments....   [tags: Investment, Finance, Time, Future value]

Research Papers
835 words (2.4 pages)

Sales Presentation Of Htc Sales Team Essay

- A sales presentation for a new HTC phone to a target market in California would entail an introduction, body, and a conclusion as a call to action. The introduction would start with a greeting to the audience and an introduction of the HTC sales team. The team would be trying to sell the new HTC one M9 and the sales manager in charge of mobile devices would lead the presentation assisted by two sales executives. HTC is a Taiwanese multinational that specializes in manufacturing tablets and smartphones whose slogan is “Here’s to Change”....   [tags: Marketing, Sales, Sales management, Taiwan]

Research Papers
942 words (2.7 pages)

Leadership Challenge For The Sales Essay

- Leadership Challenge For the Sales Enablement (SE) team, improving sales productivity by transforming the capabilities and behaviors of the sales organization is a priority (N.Purvis, personal communication, August 2, 2015). Leadership for this team has focused on hiring a number of seasoned professionals who specialize in enablement of an organization through structural course and content design. As leaders in their areas of specialty, each individual excels in the task they are asked to achieve....   [tags: Management, Sales, Sales enablement]

Research Papers
808 words (2.3 pages)

The Case Of The Gee Whiz Mark 2 Essay

- Ethical dilemmas have long been issues that have plagued all of mankind for generations. Since the beginning, the majority of humanity has struggled to do what is right when the answer wasn’t clear. Sometimes, however, the answer is not as difficult to realize, but is much more difficult to accept. In the case of the Gee-Whiz Mark 2 (GWM2), the dilemma that faces its respective company is whether or not the units that are defective should be exported to countries that have no enforceable rules to punish the marketing of said defective units....   [tags: Ethics, Term, Public, Economics]

Research Papers
710 words (2 pages)

Sales Promotion : Marketing Strategy Essay

- Sales Promotion Sales promotion is a marketing strategy that companies undertake to boost their product and service sales, as well as to promote a company’s image and brand. The marketing era has replaced the mass production concept, which consisted in producing more of a product to satisfy consumer’s demand. Indeed, in the twenty-first century business world, companies are more focused on developing marketing strategies to sell and differentiate their products from their competitor’s. Sales promotion is the marketing strategy that has proven to be efficient and generate high sales response....   [tags: Marketing, Sales, Sales promotion, Promotion]

Research Papers
906 words (2.6 pages)

HP-48SX Scientific Expandable Calculator Essay

- HP-48SX Scientific Expandable Calculator History The HP-48SX Scientific Expandable calculator was manufactured by Hewlett Packard and the copyright is dated 1989. At the time of release, the HP-48 series was the most advanced line of scientific calculators available to those in the technical fields. I purchased the calculator in 1991 through a high school mathematics program. It has been used extensively since then for virtually every class I have taken. So far, the calculator has never malfunctioned....   [tags: Technology Calculators Essays]

Research Papers
1198 words (3.4 pages)

Essay on Sales Representatives

- While there are many professions out in our growing world today, very few require as much self-determination as a sales representative. The value of a sales representative is on the rise in our economy today and many companies are looking for pioneers to take on the challenges of fulfilling the position. Being a sales representative for any company comes with much knowledge of merchandise, responsibilities, skills, and experience. The position of being a sales representative, or sales rep for short, is a very important part to the success of a company....   [tags: Career Job Sales]

Research Papers
1987 words (5.7 pages)

Personal Sales Essay examples

- Personal Sales Personal sales are the deliverance of a specially designed message to a prospect consumer by a seller; usually it comes in different forms such as face-to-face communication, personal letters, or a personal telephone conversation. Unlike advertising, a personal sales message can be more specifically targeted to individual prospects and easily altered if the desired behavior does not occur. However Personal selling is far more expensive than advertising and is generally used only when its high costs can be necessary....   [tags: Business Sales]

Free Essays
1248 words (3.6 pages)

Related Searches

Therefore, the new president introduced a proposal of measuring selling cost on a fixed and variable portion basis.

 Bernard Riesman, the president of Whiz Calculator Company, was very concerned about the method of measuring and appraisal of selling expenses. He was very sure that the method used was the thing to be changed in the company. Therefore, he introduced a proposal of new method of measurement.

 Under his proposal all selling expense items would be divided into two portions. One portion is variable to the sales and another is fixed. He thinks that this method would be better in making budgeted selling expense report & it would be further possible to adjust the budgeted report to the increased sales volume.

 In order to accomplish this goal the management of the company decided to find the fixed portion of selling expenses, by determining the amount of expenses that had to be incurred at the minimum sales volume the company can operate. It was ascertained that the minimum sales volume required to operate the company was 65 percent of total capacity of the company. (Pg No. 173)

 The controller believed that budget which varies with the sales would certainly be better than a budget that did not vary at all.

 So prior planning was done to derive accurate measures for variation in selling expenses over a longer period of time.

 Linear equation where used in order to know fluctuation of sales item with the sales volume and from them future predictions where obtained accordingly.

 As a result of which controller had both a rate of variation at a particular point on selling expense graph for each expense item?

 We will go by the proposed budgeting system mention in the case.
Justification for the same is mentioned below :-

 In earlier sales budget system it was impossible for any one to ascertain with any feeling of certainty the reasonableness of the estimates made by the various departments head .

 One obvious cause of variation in selling expenses was the variation in the “job to be done”

 Selling conditions often changed substantially after the budget was adopted, but in old system there was no provision for making the proper corresponding changes in the selling expenses budget.

 Neither was there a logical basis for relating selling expenses to actual sales volume obtained.

 So it was impossible to determine how large the increase in expenses should be.

 As a means of overcoming this weaknesses, possibility of setting selling cost budget standards on fixed and variable basis would be appropriate and reasonable one .

 In % to sales method there is no clarity on % to be taken in calculating each selling expenses.

 The expense estimates made by the department heads cannot be traced and checked if there were right or wrong in case of the present budgeting system.

 Every expense does not have any particle connection with the sales.

 It was not possible to adjust the expenses adequately in case of increase in sales volume.{For example:- Rent, Depreciation, Etc}

Suggestion For Sales Expense Reporting System @ Whiz Calculator

 Management should give some buffer budget to Paula Melmed, which would not be known to other managers of different department.

 Now if the sales volume crosses the budgeted figure, Paula Melmed can route this extra expense (which is usually variable in nature) through this additional budget provided to her.

 But this additional budget should only be used after the due permission in writing from the top management.

Hard to digest but a true fact:-
“Any one in the selling game knows that some times customers fall over each other in their hurry to buy, and other times, no matter what we do, they want even nibble. It’s a waste of time to make fancy formulate for selling cost budget under condition like that.”
Return to 123HelpMe.com