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An inflationary gap can be closed with:
Budgeted Cost
An estimate of the financial cost for items, production, or projects planned in the future.
Raw Material Purchases
The total cost of all raw materials bought by a company for use in production over a specific period.
Budgeted Raw Material Purchases
The estimated amount of raw materials to be acquired during a specific period to meet production needs, based on forecasted sales.
Budgeted Required Production
The quantity of products that must be produced in a given period to meet sales needs and inventory policies.
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