Question

Distinguish between a Production Budget and a Sales Budget.

Answer 1

	Production Budget		Sales Budget
1.	Production budget contains an estimate of the total volume of production productwise and week or monthwise.	1.	Sales budget is essentially a forecast of sales to be achieved during a specified period in future.
2.	Production budget ensures sufficient stock for sales and to manufacture goods in the most economical manner.	2.	Sales budget shows the breakup of total sales productive, territorywise and month wise.