The budget that forecasts how many units a manufacturing company should produce in order to meet sales projections is called a:
A) sales budget.
B) materials budget.
C) production budget.
D) flexible budget.

Question

Quizplus · Accepted Answer

The budget that forecasts how many units a manufacturing company should produce in order to meet sales projections is called a production budget. The sales budget is a forecast of expected sales revenue, the materials budget is a forecast of the raw materials needed to produce the forecasted level of output, and a flexible budget is a budget that adjusts for changes in activity levels.

The Budget That Forecasts How Many Units a Manufacturing Company