[amp_mcq option1=”budget production” option2=”planned production” option3=”setup production” option4=”stand by production” correct=”option1″]<\/p>\n
The correct answer is: A. budget production.<\/p>\n
Budget production is the amount of goods that a company plans to produce in a given period of time. It is calculated by adding the budgeted sales to the target ending finished goods inventory and subtracting the beginning finished goods inventory.<\/p>\n
Budgeted sales is the amount of goods that a company expects to sell in a given period of time. It is calculated by multiplying the expected sales price by the expected sales volume.<\/p>\n
Target ending finished goods inventory is the amount of finished goods that a company wants to have on hand at the end of a given period of time. It is calculated by multiplying the target finished goods inventory turnover rate by the expected sales volume.<\/p>\n
Beginning finished goods inventory is the amount of finished goods that a company has on hand at the beginning of a given period of time. It is calculated by taking the physical count of finished goods on hand at the beginning of the period.<\/p>\n
The formula for calculating budget production is:<\/p>\n
Budget production = Budgeted sales + Target ending finished goods inventory – Beginning finished goods inventory<\/p>\n
For example, if a company expects to sell 100 units of a product at a price of $10 per unit, and it wants to have an ending finished goods inventory of 20 units, and it has a beginning finished goods inventory of 10 units, then its budget production would be:<\/p>\n
Budget production = 100 units * $10\/unit + 20 units – 10 units = $1100<\/p>\n
Budget production is important because it helps companies to plan their production schedules and to ensure that they have enough finished goods on hand to meet customer demand.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”budget production” option2=”planned production” option3=”setup production” option4=”stand by production” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-59195","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n