There are various budgets within the master budget.One of these budgets is the production budget.Which of the following best describes the production budget?
A) It details the required direct labour hours.
B) It details the required raw materials purchases.
C) It is calculated based on the sales budget and the desired ending inventory.
D) It summarizes the costs of producing units for the budget perioD.

Question

Quizplus · Accepted Answer

The production budget is calculated based on the sales budget and the desired ending inventory. It determines the number of units that need to be produced in order to meet sales demand and maintain the desired level of ending inventory.

There Are Various Budgets Within the Master Budget