imagine that you are planning to start a retail business to sell varieties of books, stationaries and other related items. 

prepare a  sales budget for six months starting from 1 October 2022. Amounts can be collectively represented for all products and prepare a six-month sales budget using own figures.

Consider six types of costs incurred in running the retail store business and explain the behavior of the identified costs with proper classification. 

Prepare an expenditure budget for the six months starting on 1 OCT 2022 using the identified costs.

prepare the cash budget for the six months starting from 1 OCT 2022

which inventory valuation method would you prefer for this business and explain why 

you should consider the seasonal variations which will come into the business depending on the timings of the year while creating the budgets.
There should be assumptions when forecasting the activities. The conclusions need to be laid out clearly.

Answer rating: 100% (QA)

Sales Budget Sales Budget Oct22 Nov22 Dec22 Jan23 Feb23 Mar23 Revenue 150000 165000 50000 650000 350000 325000 Six types of costs incurred in running the retail store business and the behavior of the ... View the full answer