Asked by Tiffany McClendon on Jul 02, 2024

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A plan that states the number of units to be produced in a future period,based on the projected unit sales and inventory considerations,is the:

A) Sales budget.
B) Merchandise purchases budget.
C) Production budget.
D) Cash budget.
E) Manufacturing budget.

Production Budget

A financial plan that estimates the costs associated with the production of goods or services within a specified period.

Inventory Considerations

Inventory considerations involve managing stock levels to align with business needs, avoiding both excess and shortages while optimizing costs.

Projected Unit Sales

The estimated quantity of products a company plans to sell in a future period, often used for planning and forecasting purposes.

  • Acquire knowledge on the procedures and numerical operations essential in developing production budgets.
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GR
Gohar Rehman6 days ago
Final Answer :
C
Explanation :
A production budget is a plan that determines the number of units to be produced in a future period, based on the projected unit sales and inventory considerations. This budget is typically used by manufacturing companies to plan their production activities and ensure they have enough inventory to meet customer demand.