(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:
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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