The production schedule in units:
A)Cannot be prepared until the budgeted income statement is completed.
B)Is dependent upon the sales forecast for the period.
C)Is based upon the manufacturing cost budget,that is,upon the level of funds available for manufacturing costs.
D)Is the starting point in the preparation of the master budget.

Question

Quizplus · Accepted Answer

The production schedule is dependent upon the sales forecast for the period. Without a sales forecast, the production schedule cannot be determined as it is based on the level of demand for the product. Additionally, the production schedule is a component of the operational budget, which is developed after the sales forecast is complete. Therefore, choice B is the best answer. Choices A, C, and D are not accurate.

The Production Schedule in Units