Lesson 8

Cards (3)

  • Production Budget
    It is a plan that outlines the quantity of products a company plans to manufacture during a specific period, taking into account sales forecasts, inventory levels, and other factors.
  • PB = production budget; quantity of products a company plans to manufacture
    ESV = expected sales volume; forecasted quantity of
    products to be sold during the period
    DEI = desired ending inventory; desired quantity of products
    already in inventory at the end of the period
    BI = beginning inventory; quantity of products already in inventory at the beginning of the period
  • Formula for Production Budget
    PB = ESV + DEI- BI