If Division Inc.expects to sell 200,000 units in 2015,desires ending inventory of 24,000 units,and has 22,000 units on hand as of the beginning of the year,the budgeted volume of production for 2015 is 198,000 units.

Question

Quizplus · Accepted Answer

The budgeted volume of production for 2015 would be:

Budgeted production = Expected sales + Desired ending inventory - Beginning inventory
Budgeted production = 200,000 + 24,000 - 22,000
Budgeted production = 202,000

Therefore, the statement is false.