-Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?
A)direct materials purchases budget
B)cash budget
C)production budget
D)sales budget

Question

-Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?
A)direct materials purchases budget 
B)cash budget 
C)production budget 
D)sales budget

Quizplus · Accepted Answer

The production budget is the starting point for the preparation of the direct labor cost budget because it determines the number of units that need to be produced, which in turn affects how much direct labor will be required.

-Which of the Following Budgets Provides the Starting Point for the Preparation