Budgeted Production Needs Are Determined By

question 43

Multiple Choice

Budgeted production needs are determined by:

• A)adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total.
• B)adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total.
• C)adding budgeted sales in units to the desired ending inventory in units.
• D)deducting the beginning inventory in units from budgeted sales in units.

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Definitions:

Mixed Cost

An expense that contains both variable and fixed cost components, changing in total with the level of activity but also containing a constant element.

Straight-Line Depreciation

A method used in accounting to allocate the cost of a tangible asset over its useful life evenly.

Electricity Costs

The financial charges for the consumption of electrical energy by a business, forming part of its operating expenses.

Factory Supervisor

A managerial position responsible for overseeing the daily operations of a manufacturing facility, ensuring production targets are met efficiently.