Belco.mb_Budgeting%20Case

Belco.mb_Budgeting%20Case - Belcom Industries Belco...

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Belcom Industries Belco Industries is a company that produces and distributes a special type of chemical compound. Belco management believes their market niche is in the west coastal United States. In the short run, to establish itself, Belco is concentrating its marketing efforts in this region. In the long run, national and international sales will be important for growth. David, the management accountant serves as facilitator and a coordinator in the budgeting process. David has gathered the following Information about Belco’s operations: Sales Selling price is $60 per unit in 2000 and will not change for the first two quarters of 2001. Actual and estimated sales are as follows: 2000 Actual 2001 Estimated Nov. Dec Jan. Feb Mar Apr May Units 10,000 12,000 11,000 10,000 12,000 10,000 10,000 Cash Collection Policy 40% of the sales are cash sales and 60% are credit sales. Of the 60% credit sales, the company collects 50% in the month following the month of sale and 50% in the month after that. Production Policy
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Belco.mb_Budgeting%20Case - Belcom Industries Belco...

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