why production budget is important​

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Answer:

ANSWER!!!

Signifance

A production budget permits a company to track costs. The budget generally contains an estimate of how many units the company needs to produce. The number of units produced is based upon two factors. The first is inventory. A production budget details the costs required to keep enough product on hand to meet the inventory requirements of the company. The second factor is sales targets. The production budget forecasts the costs needed to meet sales demand for its products.

Explanation:

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