If the budget sales units are 2000, an ending inventory is 3000 units and the beginning inventory is 1000, then the budget production would be ______________?
Correct answer: B. 4000 units
- A. 6000 units
- B. 4000 units
- C. no units
- D. 8000 unitsUrban & Regional Planning
Explanation
Required production equals budgeted sales plus desired ending inventory minus beginning inventory: 2,000 + 3,000 − 1,000 = 4,000 units. The extra text after the options is unrelated to the calculation.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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