The production budget
A)summarizes the cost of producing units for the budget period.
B)is calculated based on the sales budget and the desired ending inventory.
C)specifies the required overhead.
D)specifies the required direct labour hours.

Question

Quizplus · Accepted Answer

The production budget is calculated based on the sales budget and the desired ending inventory. It summarizes the production cost and the number of units to be produced during a budget period. Overhead and direct labor hours may be included in the budget, but they are not the primary focus of the production budget.

The Production Budget