Which of the following best describes a production budget?
A)A budget that is based on sales projections plus an estimate of desired ending finished goods inventory less beginning finished goods inventory..
B)An estimate of all production costs,other than direct materials,necessary to achieve a desired level of production.
C)A short-term budget that focuses on the daily operations of the organization.
D)A series of budget schedules outlining the organization's plans for the upcoming period
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

A production budget is a budget that outlines the amount of goods that a company plans to produce in a given period based on sales projections, desired ending finished goods inventory, and beginning finished goods inventory. In other words, option A is the most accurate description of a production budget.

Which of the Following Best Describes a Production Budget