What Is The Importance Of Production Cost Budget In Manufacturing Concern?


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Aisha Profile
Aisha answered
Production cost budgeting is basically the planning process for a firm's long time production costs. It is very important for a manufacturing firm because:
- It helps in allocation of resources
- It helps in analyzing the profitability of the production activities
- It helps in analyzing the future cash flows from the production activities
- Return on investments
Anonymous Profile
Anonymous answered
The ABC garments company"s sales forecast for the next quarter,ending:june 30,indicates the following:
Product expected sales
shirts 21000units
trousers 37500
inventories at the beginning and desired quantities at the end of the quarter are as follows
product March 31 june 30
shirts 5,800units 6,200units
trousers 10,600 10,500
REQUIRED; Production budget for the second quarter.

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