Budgeting, Task 1.4c BPP Assessement 2 in the BPP Question Bank Book
What explanation is there about maintaining an inventory level? It is not clear why there is an opening inventory for December of 1200. Where is this figure coming from? It only says that the company maintains an inventory level at the end of each month equal to 20% (in volume terms). The answer says it is 10% of the value. But then how do you calculate 20% of volume?