Which of the following best describes the direct materials purchase budget?
A) It is the beginning point in the budget process.
B) It must provide for the desired ending inventory as well as for production.
C) It is accompanied by a schedule of cash collections.
D) It is completed after the cash budget.

Question

Quizplus · Accepted Answer

The direct materials purchase budget must provide for the desired ending inventory as well as for production. The other options are incorrect as A is not true, C is related to the cash budget, and D is incorrect as the direct materials purchase budget is completed before the cash budget.

Which of the Following Best Describes the Direct Materials Purchase