SS Incorporated is preparing their budgets for the upcoming period. Estimated sales for the month of May, June and July were 100,000; 95,000 and 105,000 units respectively. Based on company's policy, finished goods inventory at the end of each month shall be equal to 30% of the succeeding months sales. If SS used 20% instead of the 30% policy, which of the following would least likely happen?

a.

Answer not among the choices

b.

Cash disbursement budget would be misstated

c.

The cost of goods sold budget would be misstated

d.

Production budget would be misstated

e.

All budgets will be misstated

Clear my choice