Collins Company has some outdated products that originally cost $80,000 to make.  The products have a current resale value of $36,000 as is, but if reworked at a cost of $20,000, they could be sold for $60,000.  What is the financial advantage or disadvantage of reworking the products? a)$4,000 financial advantage b)$16,000 financial advantage c)$6,000 financial disadvantage d)$20,000 financial disadvantage

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.