Cost And Management Accountıng Deneme Sınavı Sorusu #1380483
- The production budget describes how many units to produce in order to satisfy the ending inventory requirements, after selling the expected number of units.
- In order to plan the production, managers should consider expected sales volume, units of beginning inventory, and desired level of ending inventory.
- If the company is a merchandising company, no production budget is prepared.
- Instead of production budget, merchandising companies prepare Merchandise Purchase Budget to identify the needed units of merchandise inventory to purchase during the year.
- The basic format of Merchandise Purchase Budget budget is the same as the production budget, except that the bottom line represents “budgeted purchases”.
Which of the statements above are correct?
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I and II |
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II and IV |
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I, III and IV |
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I, II, III and V |
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I, II, III, IV and V |
The production budget describes how many units to produce in order to satisfy the ending inventory requirements, after selling the expected number of units. In order to plan the production, managers should consider expected sales volume, units of beginning inventory, and desired level of ending inventory.
If the company is a merchandising company, no production budget is prepared. Instead, merchandising companies prepare Merchandise Purchase Budget to identify the needed units of merchandise inventory to purchase during the year. The basic format of this budget is the same as the production budget, except that the bottom line represents “budgeted purchases”.
As also understood from the information given all of the statemements in the options are correct, so the answer is E.
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