Which of the following statements is true?
A) The overhead budget is typically composed of variable overhead and fixed overhead.
B) The direct labor budget uses an average wage rate for direct labor.
C) The production budget is not converted into dollars.
D) The sales budget includes both units and dollars.
E) All of these.

Question

Quizplus · Accepted Answer

All the statements provided are true regarding budgeting in a business context. The overhead budget indeed consists of both variable and fixed overhead costs. The direct labor budget typically uses an average wage rate to simplify calculations and planning. The production budget is usually expressed in units rather than dollars to focus on the quantity of goods to be produced. Lastly, the sales budget includes both the number of units expected to be sold and the revenue expected from these sales, thus incorporating both units and dollars.

Which of the Following Statements Is True