A company is preparing a production budget for the next year. The following information is relevant : Budgeted sales 10,000 units Opening stock 600 units Closing stock 5% of budgeted sales The production process is such that 10% of the units produced are rejected. What is the number of units required to be produced to meet demand?

A company is preparing a production budget for the next year. The fol

1.	A company is preparing a production budget for the next year. The following information is relevant : Budgeted sales 10,000 units Opening stock 600 units Closing stock 5% of budgeted sales The production process is such that 10% of the units produced are rejected. What is the number of units required to be produced to meet demand?
A.	8,900 units
B.	9,900 units
C.	11,000 units
D.	10,900 units
Answer» D. 10,900 units

Discussion

No Comment Found

Related MCQs

Which of the following is / are true with regard to the period of budget?i) the budget period depends on the nature of industryii) master budget is prepared annually while functional budget may be for different periodsiii) Basic budget is the long term budget
Which of the following are purpose of a budget?i) Establishing strategic options ii)Motivating managementiii) Establishing long term objectives iv) Planning operations
The CIMA definition of zero-based budgeting is set out below, with two blank sections."Zero-based budgeting: A method of budgeting which requires each cost element ____________, as through the activities to which the budget relates ____________."Which combination of two phrases correctly complete the definition?
A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under :Factory overheads 60% of direct wagesAdministrative overheads 20% of work costSelling and distribution overheads 25% of work costit is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
Which of the following items should be included in a cash budget?(i) Loan repayments (ii) depreciation charges(iii) tax provision (iv) wages paid
.is a method of evaluating the job in terms of its money value.
.is concerned with discovery of facts concerning a job and .is concerned with ascertaining the money value of a job.
For conducting ..workers are studied at their jobs and all their movements and motions are noted.
..is maintained to know how the worker s time shown by the time card is spent on various jobs.
.. is the assessment of the relative worth of jobs within a company whereas .is the assessment of the relative worth of man behind the job.

Discussion

No Comment Found

Related MCQs

Reply to Comment