How is a production budget prepared?

A production budget is prepared by estimating the costs associated with producing a specific product or service. This includes costs such as materials, labor, overhead, and other expenses related to the production process. The budget is typically broken down into different categories, such as direct costs and indirect costs, to ensure all expenses are accounted for. By forecasting production costs in advance, companies can effectively plan and allocate resources to ensure the successful completion of their production goals.

This mind map was published on 2 April 2024 and has been viewed 48 times.