‘Budgeting is profit planning.’ Elaborate this statement. What accounting devices would you use where output varies? ABC Company Ltd. expects the following sales by months in units for the first six...

‘Budgeting is profit planning.’ Elaborate this statement. What accounting devices would you use where output varies?

ABC Company Ltd. expects the following sales by months in units for the first six months of next year.

The company has a policy of maintaining an inventory equal to budgeted sales for the following two months. The beginning inventory reflects this policy. Each unit costs `10. You are required to prepare purchases budget for as many months as you can both in units and rupees. Also explain why you had to stop where you did.