Reference: 07-09
Noel Enterprises Has Budgeted Sales in Units for the Next

question 73

Multiple Choice

Reference: 07-09
Noel Enterprises has budgeted sales in units for the next five months as follows: $$\begin{array} { | l | l | } \hline \text { January } & 6,800 \text { units } \\\hline \text { February } & 5,400 \text { units } \\\hline \text { March } & 7,200 \text { units } \\\hline \text { April } & 4,600 \text { units } \\\hline \text { May } & 3,800 \text { units } \\\hline\end{array}$$ Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.
-The desired ending inventory in units for March is:

• A)380.
• B)540.
• C)720.
• D)460.

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Definitions:

Dependent Variable

In an experiment or study, the variable that is being tested and measured, often to see the impact of variations in the independent variable.

Randomization

In an experiment involves assigning each individual by chance processes.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used for comparison against the group that does.

Random Sampling

A technique for selecting a sample from a population in a way that every member has an equal chance of being chosen.