To determine the production budget for an accounting period, consideration is given to all of the following except:
A) Budgeted ending inventory.
B) Budgeted beginning inventory.
C) Budgeted sales.
D) Budgeted overhead.
E) Ratio of inventory to future sales.

Question

Quizplus · Accepted Answer

The production budget focuses on the units to be produced, taking into account budgeted sales, beginning and ending inventory, and the inventory to sales ratio. Overhead costs are not directly considered in the calculation of the production budget; they are more relevant to the manufacturing budget or the budgeted income statement.

To Determine the Production Budget for an Accounting Period, Consideration