Which of the following describes the inventory, purchases, and cost of sales budget?
A)It captures the variable and fixed expenses of the business.
B)It depicts the breakdown of sales based on terms of collection.
C)It helps in planning to ensure the business has adequate cash.
D)It aids in planning to ensure the company has adequate inventory on hand.

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of sales budget is used to plan and ensure that the company maintains adequate inventory levels to meet sales demands.

Which of the Following Describes the Inventory, Purchases, and Cost