Question: 1. Rad Co. provides the following sales forecast for the next four months:
April May June July
Sales (units) . . . . . . . . 500 580 530 600
The company wants to end each month with ending finished goods inventory equal to 20% of next month's sales. Finished goods inventory on April 1 is 174 units. Assume July's budgeted production is 540 units. Prepare a production budget for the months of April, May, and June.
2. Participatory budgeting can sometimes lead to negative consequences. Identify three potential negative outcomes that can arise from participatory budgeting.