Vidyalelo
Commerce · Q569

Costing

Graduate and Post Graduate · Commerce · question 569

Q569

Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to

A.
budget production
Answer
B.
planned production
C.
setup production
D.
stand by production

Answer: Option A

Solution

Answer: Option A
Solution:
Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to budget production. The production budget contains details of the number of units that are intended to be produced by a business in a particular period.