LO 7.2What operating budget exists for manufacturing but not for a retail company?

Business

1 answer:

belka [17]3 years ago

8 0

Answer:

Production Budget

Explanation:

Production Budget is usually substituted with Purchasing budget for a retail company.

The operating budget usually consist of the:

sales budget,

production budget,
manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted with Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they substitute the number of units to be purchased, to the number of units to be produced.

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