Why Might the Number of Units in the Sales Budget

question 85

Multiple Choice

Why might the number of units in the sales budget and the production budget differ?

• A)The finished goods inventory levels changed.
• B)The direct material inventory levels changed.
• C)Excess overhead costs were incurred.
• D)Customers returned merchandise.

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Definitions:

Operations

The day-to-day activities required for a business to function, which can include production, manufacturing, sales, and marketing among others.

Par Common Stock

The nominal or face value assigned to common stock shares in the corporate charter.

Market Price

The ongoing rate for buying or selling an asset or service in the open market.

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset on a company's balance sheet.