Which of the following budgets are identical in a service firm?
A) the cash receipts budget and the cash payments budget
B) the production budget and the materials purchases budget
C) the sales budget and the production budget
D) the materials purchases budget and the cash payments budget

Question

Quizplus · Accepted Answer

In a service firm, there are no materials or goods produced, so the closest equivalent to a production budget is the sales budget, which forecasts the services to be sold.

Which of the Following Budgets Are Identical in a Service