What is a production budget expressed in units equal to?  - ProProfs Discuss
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What is a production budget expressed in units equal to? 

Asked by Dbrose, Last updated: Jul 23, 2024

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2 Answers

Christian Jackson

Christian Jackson

Christian Jackson
Christian Jackson, Content Developer, Austin

Answered Feb 21, 2019

The production budget is known to be very important for people who would do accounting. This can be used by companies when they are thinking about the next project that they are going to release.

They want to make sure that they know exactly how much they are going to spend before they start the project. In order to determine the production budget, there is a need to identify the cost of the items that are going to be used. If there is not the actual cost, even the estimate of each item will be used to figure out the total possible cost of the production.

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John Smith

John Smith

John Smith
John Smith

Answered Mar 02, 2017

Budgeted sales less beginning finished goods inventory plus targeted ending finished goods inventory.
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