Asked by Rachel Oftedahl on Apr 25, 2024
Verified
To determine the production budget for an accounting period, consideration is given to all of the following except:
A) Budgeted ending inventory.
B) Budgeted beginning inventory.
C) Budgeted sales.
D) Budgeted overhead.
E) Ratio of inventory to future sales.
Budgeted Sales
Projected sales figures used for planning purposes, often as part of a company's budgeting process to estimate future revenue.
- Calculate production requirements based on sales forecasts and inventory policies.
Verified Answer
MM
Mohamed Muridi8 days ago
Final Answer :
D
Explanation :
The production budget focuses on the units to be produced, taking into account budgeted sales, beginning and ending inventory, and the inventory to sales ratio. Overhead costs are not directly considered in the calculation of the production budget; they are more relevant to the manufacturing budget or the budgeted income statement.
Learning Objectives
- Calculate production requirements based on sales forecasts and inventory policies.
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