Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?
A) Direct materials purchases budget
B) Cash budget
C) Production budget
D) Sales budget

Question

Quizplus · Accepted Answer

The production budget provides information on the amount of goods to be produced during a certain period. It includes information on the number of units to be produced, as well as the timing of production. This information is necessary for determining the direct labor cost budget, as it allows managers to estimate the number of labor hours required to produce the goods. The direct labor cost budget is then prepared based on the estimated labor hours and the labor rate.

Which of the Following Budgets Provides the Starting Point for the Preparation