A purchases budget is used instead of a production budget by
A) merchandising companies.
B) service enterprises.
C) not-for-profit organizations.
D) manufacturing companies.

Question

Quizplus · Accepted Answer

A purchases budget is used by merchandising companies to plan the purchases of merchandise inventory to be sold to customers. Service enterprises do not typically have inventory to purchase, not-for-profit organizations do not have the goal of making a profit, and manufacturing companies typically use a production budget to plan the production of goods rather than a purchases budget.

A Purchases Budget Is Used Instead of a Production Budget