The production or manufacturing budget becomes a very important planning tool under which of the following conditions?
A) When the product experiences seasonal demand fluctuations.
B) When it is necessary to carry higher levels of finished goods inventory.
C) When the company uses marketing programs to stimulate demand during the year.
D) All of the answers are correct.
E) None of the answers apply.

Question

Quizplus · Accepted Answer

The production or manufacturing budget is crucial when there are seasonal demand fluctuations, a need for higher inventory levels, or marketing programs that affect demand, as it helps in planning and aligning production with demand.

The Production or Manufacturing Budget Becomes a Very Important Planning