a. Differentiate between flexible budget and static budget. b. The sales forecasts for coming four months of a company are: Months Chaitra Baishak…
BBS Cost and Management Accounting · 2078 · Solved Question with Answer
a. Differentiate between flexible budget and static budget.
b. The sales forecasts for coming four months of a company are:
| Months | Chaitra | Baishak | Jestha | Ashad | Shawan |
| Output ( Units ) | 10,000 | 9,000 | 8,000 | 10,000 | 11,000 |
Each unit of finished product needs 3 kg of material @ Rs. 5 per kg. The company has a policy of keeping ending inventory of finished goods in each month that will be equal to half month's sales and raw material is 50 percent of raw material required to same month's production need.
Required: Production Budget and Material Purchase Budget for the three months from Baisakh to Ashad