Production budget is primarily based on:

Question

Quizplus · Accepted Answer

The production budget is primarily based on the revenues budget as this determines the amount of money the company expects to generate from its sales. The production budget outlines the resources necessary to manufacture the products needed to meet the revenue targets. Administrative costs and capital expenditures budgets may be used in creating overall financial plans, but they are not directly related to production budgeting. Projected profit is also a consideration, but it is not the primary basis for determining the production budget.

Production Budget Is Primarily Based On