If the budget sales units are 5000, the ending inventory is 4000 units and the beginning inventory is 1000, then the budget production will be __________?
Correct answer: C. 8000 units
- A. 4000 units
- B. 5000 units
- C. 8000 units
- D. 10000 unitsHire An Accountant
Explanation
Budgeted production equals budgeted sales plus desired ending inventory minus beginning inventory: 5,000 + 4,000 − 1,000 = 8,000 units.
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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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