6. Production, material and logistics budget

Question 1

Production, material and logistics budget also known as

Answer 1

COGS

Question 2

production budget consists of (4)

Answer 2

1. direct and indirect materials
2. direct labor
3. manufacturing overhead
4. logistics direct cost

Question 3

direct and indirect materials

Answer 3

all materials that form part of the finished product

Question 4

direct labor

Answer 4

salaries of those directly involved

Question 5

production budget

Answer 5

statement of the output of product

Question 6

desired ending inventory based on (4)

Answer 6

1. variation in product time
2. variability in lead time required to replenish an item
3. desired level of service that a company wants to provide its customers
4. production capacity