In the Production Budget,the Total Number of Units to Be

question 74

Multiple Choice

In the production budget,the total number of units to be produced is equal to budgeted sales in units ________.

• A) plus the desired units in ending inventory minus the number of units in beginning inventory
• B) minus the desired units in ending inventory minus the number of units in beginning inventory
• C) minus the desired units in ending inventory plus the number of units in beginning inventory
• D) plus the desired units in ending inventory plus the number of units in beginning inventory

---

Definitions:

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and shipping costs from the point of origin.

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Debit Memo

A document issued to record a reduction in the balance due from a customer, often due to a return or correction.

Gross Profit

The difference between revenue and the cost of goods sold before expenses.