For the manufacturing budget preparation. What other forecast or budget/s affects the raw materials budget and in what way? How would a growth in the sales forecast affect the raw materials budget? What will this growth mean to the budgeted statement of financial performance and what should be considered in terms of the capacity of the production department and costs across all departments?

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Answer When preparing a manufacturing budget several forecasts and budgets can impact the raw materials budget For instance the production forecast directly influences the amount of raw materials need... View the full answer