A plan that states the number of units to be produced in a future period, based on the projected unit sales and inventory considerations, is the:
A) Sales budget.
B) Cash budget.
C) Production budget.
D) Merchandise purchases budget.
E) Manufacturing budget.

Question

Quizplus · Accepted Answer

The production budget is a plan that outlines the number of units to be produced in a future period based on projected sales and inventory levels. This budget is important in ensuring that production levels meet demand without resulting in excess inventory or stockouts.

A Plan That States the Number of Units to Be