CEVAP:

The production budgets should be prepared in terms of volume of production as paralel to sales budget and in details of product types. It should address the following aspects of production:

• The term of production budget,

• The volume of production to substantiate the sales budget, as well as the required level of inventory,

• The timing of production of each product type,

• The location of production,

• The mandatory activities within the production process,

• The tools to measure the productivity of the production process,

• The plans for labor, machinery and equipments and service requirements,

• The cost figures to determine the cost per unit