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 labor 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

Crystal Jackson · Accepted Answer

Final Answer : C, Explanation :  The production budget is calculated based on the sales budget and the desired ending inventory. It outlines the number of units that need to be produced to meet sales expectations and the necessary inventory levels. This budget is used to plan for the production process and ensure that adequate resources, such as labor and raw materials, are available to meet demand.

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