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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.
Absenteeism
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The manufacturing of nay product requires the use of raw materials of semi finished materials which are further processed to produce the finished product. In some product.
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