Chapter 20, Problem 2MCQ

To determine

Sales Budget:

This budget represents total sales which is product of estimated number of units to be sold and expected selling price of such units. It’s a part of master budget.

Closing stock:

It is the amount of raw material inventory, work in progress inventory and finished goods inventory left with business at the end of accounting period.

Opening stock:

It is the inventory at the beginning of accounting period. Opening stock of next accounting period is equal to closing stock of previous accounting period.

To identify: Correct option