Which of the following best explains 'purchasing materials budget'?
A) The volume of planned purchases.
B) The volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product.
C) The total purchasing budget.
D) The purchasing budget for each item.

Question

Which of the following best explains 'purchasing materials budget'? 
A) The volume of planned purchases. 
B) The volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product. 
C) The total purchasing budget. 
D) The purchasing budget for each item.

Quizplus · Accepted Answer

A purchasing materials budget refers to the estimation of the volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product.

Which of the Following Best Explains 'Purchasing Materials Budget