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Question
Distinguish between a Production Budget and a Sales Budget.
Distinguish Between
Solution
| Production Budget | Sales Budget | ||
| 1. | Production budget contains an estimate of the total volume of production productwise and week or monthwise. | 1. | Sales budget is essentially a forecast of sales to be achieved during a specified period in future. |
| 2. | Production budget ensures sufficient stock for sales and to manufacture goods in the most economical manner. | 2. | Sales budget shows the breakup of total sales productive, territorywise and month wise. |
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Types of Budgets
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