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Answers
Answer:
manufacturing firm develops a production budget, which shows the number of units of products to be manufactured. This is based on forecast sales, adjusted for planned inventory levels. Based on the production budget, a manufacturer develops cost budgets for the direct materials, direct labor and overhead that will be required in the production process.
Explanation
In preparing a production budget, an important consideration to be kept in mind is the firm’s inventory policy. The sales budget is the foundation for the production budget with adjustments for beginning inventory and inventory desired at the end of the budget period. Production Budgets, like the sales budgets, are developed on a unit basis. A production budget depends on 3 factors:
Answer:
In economics, output is defined as the quantity of goods or services produce in a certain period of time by a firm, industry, or country. Output can be consumed or used for further production.
Revenue, also known as turnover, is the income that a company receives from normal business activities, usually from the sale of goods and services. Companies can also receive revenue from interest, royalties, and other fees.
The performance of a company is determined by how its asset inflows (revenues) compare with its asset outflows (expenses). Revenue is a direct indication of earning quality.