Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale. Inventory signifies one of the most important assets that most businesses hold, because the turnover of inventory represents one of the primary sources of revenue generation and successive earnings for the company’s shareholders/owners.

Production Budget

Learning Objective of the article: Define and explain production budget. Prepare a production budget.(Formula and format) Definition and Explanation of Production Budget: The production budget is prepared after the sales budget. The production budget(budget de production) lists the number of units that must be produced during each budget period to