Question

The number of units in the sales budget and the production budget may differ because of a change in ________.

A) finished goods inventory levels
B) overhead charges
C) direct material inventory levels
D) sales returns and allowances

Answer 1

The number of units in the sales budget and the production budget may differ because of a change in finished goods inventory levels.

Step-by-step explanation:

The number of units in the sales budget and the production budget may differ because of a change in A) finished goods inventory levels. When the finished goods inventory levels increase, the number of units in the sales budget may be higher than the number of units in the production budget. Conversely, when the finished goods inventory levels decrease, the number of units in the sales budget may be lower than the number of units in the production budget.