Question

which of following budget would not be prepared by a retailer? Administrative, Sales, cash, production.

Answer 1

Answer:

Production.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year.

Basically, budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The key principle of supply chain management can be best summed up as collaboration between multiple firms. Thus, these multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.

A retailer can be defined as an individual or company that buys finished goods directly from a wholesaler and sells directly to the end users (consumers).

In this context, a retailer would prepare an administrative, sales and cash budget but certainly wouldn't prepare a production budget because retailers aren't saddled with the responsibility of producing goods.

Simply stated, a production budget would be prepared by a manufacturer or producer.