Questions: The number of units that must be made to satisfy sales needs and to provide for the desired ending inventory is shown on the budget. (Enter only one word per blank.)
Transcript text: The number of units that must be made to satisfy sales needs and to provide for the desired ending inventory is shown on the $\square$ budget. (Enter only one word per blank.)
Solution
The answer is: production
Explanation:
The production budget is a financial plan that outlines the number of units that must be produced to meet sales demands and achieve the desired ending inventory levels. It takes into account the sales forecast and the inventory policy of the company.
The production budget ensures that there are enough units available to meet customer demand while also maintaining an appropriate level of inventory to avoid stockouts or excess inventory.
This budget is crucial for planning manufacturing activities, scheduling labor, and managing raw material purchases.