The correct answer is A. Cost of production.
A cost of production budget is a financial plan that outlines the expected costs associated with producing a product or service. It is used to help businesses manage their costs and ensure that they are profitable. The cost of production budget is typically divided into three categories: material costs, labor costs, and overhead costs.
Material costs are the costs of the raw materials that are used to produce a product. Labor costs are the costs of the wages and salaries that are paid to the employees who produce the product. Overhead costs are the costs of other resources that are used in the production process, such as utilities, rent, and insurance.
The cost of production budget is an important tool for businesses because it helps them to control their costs and ensure that they are profitable. By understanding their costs, businesses can make informed decisions about pricing, production, and marketing.
The other options are incorrect because they are not directly related to the cost of production. Purchase budget is a financial plan that outlines the expected costs of purchasing goods or services. Sales budget is a financial plan that outlines the expected revenue from selling goods or services. Cash budget is a financial plan that outlines the expected cash inflows and outflows over a period of time.