Which of the following equations best depicts a basic production budget?
A) Required production = Projected sales - Desired ending inventory + Beginning inventory
B) Required production = Projected sales + Desired ending inventory - Beginning inventory
C) Required production = Projected sales - Desired ending inventory - Beginning inventory
D) Required production = Projected sales + Desired ending inventory + Beginning inventory

Question

Quizplus · Accepted Answer

The correct formula for a basic production budget is: Required production = Projected sales + Desired ending inventory - Beginning inventory. This equation calculates the total number of units that need to be produced to meet projected sales and desired inventory levels, taking into account the inventory already available at the beginning of the period.

Which of the Following Equations Best Depicts a Basic Production