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1) In order to determine a raw materials purchasing programme and the resulting budget, one starts from the raw materials consumption and takes into account
1) In order to determine a raw materials purchasing programme and the resulting budget, one starts from the raw materials consumption and takes into account the desired change in raw materials stocks. Why is it necessary to make this when, in the forecast income statement, the opposite approach is taken (starting from purchases and taking into account the change in stocks in the opposite direction to that previously used to find consumption)?
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