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There Are Various Budgets Within the Master Budget

Question 30

Multiple Choice

There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget?


A) It summarizes the costs of producing required units for the budget period.
B) It details the required raw materials purchases.
C) It details the required direct labour hours.
D) It is calculated based on the sales budget, the desired beginning inventory and the desired ending inventory.

Correct Answer:

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