Which of the following is not true? a. In creating the sales forecast, outside factors such as the state of the economy, should be considered. b. The production budget is prepared in units and dollars. c. The master budget is the comprehensive plan for the organization as a whole. d. The sales forecast is done before the sales budget. e. One approach to forecasting sales is the bottom-up approach.

Question

Business

Trevin Everett

10 May, 16:53

Which of the following is not true? a. In creating the sales forecast, outside factors such as the state of the economy, should be considered. b. The production budget is prepared in units and dollars. c. The master budget is the comprehensive plan for the organization as a whole. d. The sales forecast is done before the sales budget. e. One approach to forecasting sales is the bottom-up approach.

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Sumo · Answer 1

B) The production budget is prepared in units and dollars.

Explanation:

The production budget is an estimate of how many units of products the company is going to produce during the next period or periods. This forecast is usually done considering the estimated sales and the amount of finished units that need to be available.

The production budget is prepared in units of products, not dollars.