PRODUCTION BUDGET

1.     It provides information regarding the number of units that should be produced over a given accounting period based on expected sales and

targeted levels of inventories.

• Required production          

• Production budget             

• Beginning invetories

• Projected Sales

2. It figures within the specified time frame based on previous sales information and trends.

• Beginning inventories          

• Projected Sales                                     

• Time frame

• Cash disbursement

3. It refers to the leftover inventory from previous production cycles.

• Ending Inventory                

• Beginning inventory            

• Projected sales

• Operating budget

4. What is the first step in calculating a production budget?

• Calculate the required production

• Perform beginning inventory  

• Determine planned inventory

• Set the time frame and product

5.     What is the correct formula in calculating the required production?

A.    Beginning inventories X Ending Inventories = Required Production

• Beginning inventories X Ending Inventories = Required Production

• Expected Sales – Cash Disbursement = Required Production

• Required Production = Expected Sales + Target Ending Inventories – Beginning Inventories

• Target Ending Inventories + Beginning Inventories – Expected Sales = Required Production

6. It refers to the time interval used to calculate the production budget.

• Required Production

• Target Ending Inventory

• Expected or Projected Sales

• Specified time frame

7. The number of items the organization plans on having in its inventory at the end of the specified time frame.

• Expected or Projected Sales

• Target Ending Inventory

• Beginning Inventories

• . Specified time frame

8. The number of units an organization must produce within a specified time

  frame to achieve profitability.

• Expected or Projected Sales

• Target Ending Inventory

• Beginning Inventories

• Required Production

9-13. What are the 5 factors that to consider in production budget?​ ​ (a)   ​ ​ (b)   ​ ​ (c)   ​ ​ (d)   ​ ​ (e)  

• Specified time frame
• Expected or Projected Sales
• Target Ending Inventory
• Beginning Inventories
• Required Production
• Expected credit
• CAsh disbursement

14. The ending inventory of current period is _________ inventory of next period