In order to estimate production requirements, we
A)add beginning inventory to projected sales in units and subtract desired ending inventory.
B)add projected sales in units to desired ending inventory and subtract beginning inventory.
C)add beginning inventory to desired ending inventory and divide by two.
D)add beginning inventory to desired ending inventory and subtract projected sales in units.

Question

Quizplus · Accepted Answer

To estimate production requirements, you add projected sales in units to the desired ending inventory and then subtract the beginning inventory. This ensures that you have enough production to meet sales demands and maintain the desired inventory level.

In Order to Estimate Production Requirements, We