Which of the following would not be included in the inventory purchases budget?
A) Required purchases
B) Cash collections
C) Budgeted cost of goods sold
D) Desired ending inventory

Question

Quizplus · Accepted Answer

The inventory purchases budget is used to determine the amount of inventory that needs to be purchased to support budgeted sales and desired inventory levels. It includes the cost of required purchases (A) to meet sales projections, budgeted cost of goods sold (C), and desired ending inventory (D). Cash collections (B) are not related to inventory purchases and would not be included in this budget.

Which of the Following Would Not Be Included in the Inventory