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How is production budget determined?
A production budget determines the cost of producing the calculated volume of saleble products. The production plan is computed in terms of the number of units to be produced within each era, as a month. As far as probable, the production must be planned at a relatively even rate, even if the sales budget shows a high seasonal sales forecast.
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I need 400 words assignment
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FIXED COST=40000, VARIABLE COST=20 PER UNIT, SELLING PRICE=100 PER UNIT. TURNOVER REQUIRED FOR A PROFIT OF RS.30000
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It allocates costs based on the price elasticity of demand. Yet higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.
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