Which budget is Melinda likely to depend on when managing physical units?

When managing physical units, Melinda is likely to depend on the production budget. The production budget outlines the number of units a company needs to produce during a specific period in order to meet sales forecasts and maintain desired inventory levels. It is essential for coordinating production activities with the anticipated demand for products.

This budget takes into consideration the sales budget to determine how many products need to be manufactured, accounting for both the anticipated sales and the current inventory on hand. By focusing on the production budget, Melinda can plan for raw materials, labor needs, and capacity utilization, ensuring that there are sufficient physical units available to meet demand without overproducing.

Other budget types, such as the sales budget, financial budget, and operational budget, serve different purposes. While the sales budget focuses on forecasting revenue from sales, the financial budget deals with overall financial planning, such as cash flow and capital expenditures. The operational budget encompasses various operational expenses, but it does not specifically target the production of physical units like the production budget does. Therefore, for managing physical units directly, the production budget is the most relevant tool.