(a) For each of the following, state three reasons why a firm may wish to keep: (i)...

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(a) For each of the following, state three reasons why a firm may wish to keep:

(i) a minimum stock level of finished goods, and

(ii) an even level of production in the face of fluctuating demand.

(b) The sales forecast for Douglas \& Co for July-December \(19 \times 7\) is:image text in transcribed

Produce a production budget showing monthly opening and closing stock figures if the firm wishes to maintain an even level of producing 300 units each month, and a minimum stock level of 150 units.
What must the opening stock be at 1 July to achieve this?

(c) Under what circumstances, in budgetary control, may a firm's productive capacity prove to be its limiting or key factor?

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ISE Business Accounting

ISBN: 9780273638407

8th Edition

Authors: Frank Wood, Alan Sangster

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