English

Production budget is dependent on ______.

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Question

Production budget is dependent on ______.

Options

  • Cash Budget

  • Cash Budget

  • Master Budget

  • Sales Budget

MCQ
Fill in the Blanks
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Solution

Production budget is dependent on sales budget.

Explanation:

The production budget is computed from the sales budget because projected sales volumes determine required production units, adjusted for opening/closing inventories, plant capacity and material availability; production planning therefore depends primarily on sales forecasts.

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Chapter 9: Budgeting - EXERCISES [Page 161]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 9 Budgeting
EXERCISES | Q 4. | Page 161
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