Total production is equal to which of the following?

Total production is equal to which of the following?

• A. Sales Plus Wastage
• B. Sales Minus Wastage
• C. Purchases Plus Wastage
• D. Production Units Multiplied By Material Used Per Unit

Answer: (A)

Total production includes every unit that was produced, even if some are not sold due to wastage. Wastage represents units that were manufactured but turned out unusable, so to find the total produced you add these wasted units to the units that were sold. For example, if 10,000 units are sold and 500 units are wasted, total production is 10,500 units. The other options don’t fit because they mix inputs or alter the sold quantity in ways that don’t reflect the actual produced quantity: subtracting wastage from sales understates production, adding wastage to purchases mixes inputs with outputs, and multiplying production units by material per unit gives material usage, not the number of units produced.

Total production includes every unit that was produced, even if some are not sold due to wastage. Wastage represents units that were manufactured but turned out unusable, so to find the total produced you add these wasted units to the units that were sold. For example, if 10,000 units are sold and 500 units are wasted, total production is 10,500 units.

The other options don’t fit because they mix inputs or alter the sold quantity in ways that don’t reflect the actual produced quantity: subtracting wastage from sales understates production, adding wastage to purchases mixes inputs with outputs, and multiplying production units by material per unit gives material usage, not the number of units produced.