Asked by
Brittany Lankford
on Oct 10, 2024
Verified
In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.
Production Budget
An estimate of the total amount of production, often expressed in units, that a company plans to manufacture during a specific period.
Finished Goods Inventory
The stock of completed products that are ready to be sold but are still in the company's inventory.
- Familiarize with the process involved in the generation of individual budgets, like production, direct materials, and direct labor.
Verified Answer
BG
Learning Objectives
- Familiarize with the process involved in the generation of individual budgets, like production, direct materials, and direct labor.