In a production budget total required production units are the budgeted sales units plus
A) beginning finished goods units.
B) desired ending finished goods units.
C) desired ending finished goods units plus beginning finished goods units.
D) desired ending finished goods units minus beginning finished goods units.

Question

Quizplus · Accepted Answer

The total required production units in a production budget are calculated by adding the desired ending finished goods units to the budgeted sales units and then subtracting the beginning finished goods units. This accounts for both the inventory needed to meet sales forecasts and adjustments for existing inventory levels.

In a Production Budget Total Required Production Units Are the Budgeted