Which of the following is not true of the direct materials purchases budget?
A)It is determined by the anticipated change in the direct materials inventory level and the production budget.
B)It does not affect the forecasted balance sheet.
C)It is expressed in units and dollars.
D)It affects the budgeted income statement.

Question

Quizplus · Accepted Answer

The direct materials purchases budget does affect the forecasted balance sheet because it involves planning for future purchases of direct materials, which are included in inventory on the balance sheet. All other options are true.

Which of the Following Is Not True of the Direct