ocr: Worked Example Budgets must inter-link and be co-ordinated with each other. In the following example we shall see that the production department cannot determine its activity levels until it first considers the budgeted level ofs sales and the desired levels of closing stock. Period1 Period2 Period 3 Opening Stock 500 800 700 Required Production 2600 2300 2400 Budgeted Sales 2300 2400 2500 Budgeted Closing Stock 800 700 600
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