Asked by Garrett Jones on Apr 29, 2024
Verified
The production budget is typically prepared before the direct materials budget.
Production Budget
A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.
Direct Materials Budget
A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
- Understand the components and preparation of the production budget.
Verified Answer
JN
Jeanie NowakMay 03, 2024
Final Answer :
True
Explanation :
The production budget is usually considered the first budget to be prepared, as it is the basis for other budgets such as the direct materials budget, direct labor budget, and manufacturing overhead budget.
Learning Objectives
- Understand the components and preparation of the production budget.