A plan that states the number of units to be manufactured during each future period covered by the budget, based on the budgeted sales for the period and the levels of inventory needed to support future sales, is the:
A) Sales budget.
B) Merchandise purchases budget.
C) Production budget.
D) Cash budget.
E) Manufacturing budget.

Question

Quizplus · Accepted Answer

The description matches the definition of a production budget, which outlines the number of units that need to be manufactured to meet sales demand and maintain adequate inventory levels.

A Plan That States the Number of Units to Be