Day: February 21, 2021

A company has a policy of holding stock equal to next month’s expected sales plus 10%.

The information below shows the budgeted sales for the next three months.

• Aug   —  300 units
• Sept  —  270 units
• Oct   —  360 units

What must be the company’s production in September, in order to achieve its objectives?

Select ONE answer:

1. 267
2. 333
3. 369
4. 396

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct = – (270 *0.1) + 360 + (360 * 0.1)
4. Not correct

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