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Budgeting for Production (I

Question 25

Multiple Choice

Budgeting for production (i.e., units to be produced in an upcoming budget period) :


A) Is simply an extension of the sales forecast.
B) Is prepared after the materials purchases budget is prepared.
C) Involves the sales budget and both beginning and ending finished goods inventory amounts.
D) Is not needed under a JIT production philosophy.
E) Is normally the first major step in the master budgeting process.

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