A production budget is not needed for a service organization

Name: A production budget is not needed for a service organization
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

A production budget is only needed for organizations that produce and sell goods, as they need to plan for the production of goods and the associated costs. In a service organization, there are no physical inventories to manage, so the focus shifts to managing direct labor costs and billable hours. Therefore, a production budget is not needed for service organizations.

A Production Budget Is Not Needed for a Service Organization