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Unformatted text preview: 1. Always start with Sales Budget ($ sales and units) and always include expected cash collections 2. Production Budget: Number of units produced to meet sales demand and provide Ending Inventory for each period 3. DM Budget MUST start with production units not sales units Number of DM units must be purchased to meet production demands Provide desired Ending Inventory for each period Remember: Production + DM for a quarter o Beginning Inventory = Beginning Inventory for the first month of the quarter o Ending Inventory = Ending inventory for the last month of the quarter...
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- Spring '08