Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.
-The budget that summarizes future plans for the acquisition of fixed assets is the _____ budget.

Question

Quizplus · Accepted Answer

The budget that outlines future plans for the acquisition of fixed assets is known as the capital expenditures budget. This budget is used for planning purchases of long-term assets like buildings, machinery, and equipment.

Next Year's Sales Forecast Shows That 20,000 Units of Product