The sales budget and the desired level of ending finished goods inventory are primary inputs into the preparation of the:

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The production budget is prepared based on the sales budget and the desired level of ending finished goods inventory. It outlines the number of units that need to be produced to meet sales demand and inventory targets. The cash budget, manufacturing overhead budget, and selling and administrative costs budget are prepared using different inputs and factors.

The Sales Budget and the Desired Level of Ending Finished