There are various budgets in the budgeting process. Once of these budgets is the production budget. Which of the following best describes the production budget? Question 14 options: It details the required direct labour hours It details the required raw materials purchases It is calculated based on the sales budget and the desired ending inventory It summarizes the costs of producing units for the budget period.
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.
There are various budgets in the budgeting process. Once of these budgets is the production budget. Which of the following best describes the production budget?
Question 14 options:
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It details the required direct labour hours |
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It details the required raw materials purchases |
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|
It is calculated based on the sales budget and the desired ending inventory |
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It summarizes the costs of producing units for the budget period. |
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