The Cost accountant of a medium size manufacturing firm that specializing in producing one product is in the process of preparing the production budget for the upcoming year. The following information were provided: Sales forecast is estimated to be 40,000 units; desired ending inventory is 10% of forecasted sales; and beginning inventory is expected to be 2,000 units. How many units should be produced for the upcoming year? Question 13 options: a)42,000 units. b)44,000 units. c)38,000 units. d)40,000 units.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The Cost accountant of a medium size manufacturing firm that specializing in producing one product is in the process of preparing the production budget for the upcoming year. The following information were provided: Sales
options:
a)42,000 units.
b)44,000 units.
c)38,000 units.
d)40,000 units.
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