Production Budget

( hypertext transfer protocol://www.accountingformanagement.com/production_budget.htm ) Production Budget: Learning Objective of the article: 1. pay back and explain production budget. 2. Prepare a production budget. description and Explanation of Production Budget: The production budget is wide-awake after the gross revenue budget. The production budget lists the number of units that must be produced during each budget period to meet sales ineluctably and to provide for the desired ending inventory. Production needs can be determined as follows.

|  |Budgeted sales in units------------------- |XXXX | | |Add desired ending inventory------------ |XXXX | | |Total need--------------------------------------- |-------- | | |less descent inventory-------------------- |XXXX | | |Required production-------------------------- |XXXX | | | |-------- | | | |XXXX | | | |===== | Production requirements for a period are influenced by the desired level of ending inventory. Inventories should be carefully planned. extravagant inventories tie up funds and create storage problems. meagre inventories can lead to lost sales or set production efforts in the following period. Example Is this the right try for you? Watch the video below to read 2 more pages now. or If you want to get a full essay, position it on our website: Ordercustompaper.com

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