Question

Write a short note on the production budget.

Answer 1

A production budget, prepared on the basis of the sales budget, estimates the total quantity of output required to meet sales and desired stock levels and helps anticipate production cost and capacity needs. It guides the planning of raw materials, labour, power, and machine use, and is often broken down into material, labour, plant & equipment, and R&D budgets to specify quantities, costs, and resource requirements.