Since a Flexible Budget Is Based on Actual Sales Volume

question 64

True/False

Since a flexible budget is based on actual sales volume, it cannot be prepared until after the end of the period.

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Definitions:

Throughput

The rate at which a system generates goods or services over a certain period of time.

Reduced Inventory

Reduced inventory involves minimizing the amount of goods or materials held in stock to lower costs, reduce waste, and increase efficiency in production and distribution processes.

JIT

Just-In-Time, an inventory management strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

TPS

Toyota Production System, a manufacturing methodology focused on reducing waste and improving efficiency and quality.