Question 1
The number of units in the sales budget and the production budget may differ because of a change in ________.
◦ ending finished goods inventory levels
◦ total overhead charges for the year
◦ beginning direct material inventory levels
◦ sales returns and allowances
Question 2
The operating budget process generally concludes with the preparation of the ________.
◦ production budget
◦ cash flow statement
◦ balance sheet
◦ budgeted income statement