(a)[3]
State three factors that could affect the accuracy of a sales budget.
(b)[8]
Prepare the production budget (in units) for periods 1 to 3.
(c(i))[7]
Prepare the purchases budget for periods 1 and 2 in kilos.
(c(ii))[2]
Prepare the purchases budget for periods 1 and 2 in dollars.
(d)[5]
Advise the directors whether or not they should accept either of these suggestions. Justify your answer. Ignore the effect on variances.