The Effect of Increasing the Targeted (I

question 47

Multiple Choice

The effect of increasing the targeted (i.e., desired) ending inventory for a given budget period has the following effect on the production budget for the period:

• A) Increases the required production for the budget period.
• B) Has no effect on the required production for the budget period.
• C) Has an indeterminate effect (i.e., additional information is required before the question can be answered).
• D) None of these answer choices are correct.

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