The direct materials budget details
1. the quantity of direct materials to be purchased.
2. the cost of direct materials to be purchased.
A) 1
B) 2
C) both 1 and 2
D) neither 1 nor 2

Question

The direct materials budget details
1.	the quantity of direct materials to be purchased.
2.	the cost of direct materials to be purchased.
A)	1
B)	2
C)	both 1 and 2
D)	neither 1 nor 2

Quizplus · Accepted Answer

Both factors affect the cost of direct materials to be purchased. The quantity of materials needed determines the quantity that must be purchased, and the price per unit determines the total cost of the materials to be purchased. Thus, both factors impact the cost of direct materials to be purchased.

The Direct Materials Budget Details