Cash outflows for overhead expenditures is shown on:
A) the materials purchases budget.
B) the investing activity section of the cash summary budget.
C) the cash disbursements budget.
D) the cash receipts budget.

Question

Quizplus · Accepted Answer

Cash outflows for overhead expenditures are shown on the cash disbursements budget, which tracks all expected cash outflows for a period of time. The materials purchases budget only tracks cash outflows related to purchasing materials, while the investing activity section of the cash summary budget tracks cash outflows related to investing activities such as buying or selling assets. The cash receipts budget tracks cash inflows only. Therefore, the correct answer is C.

Cash Outflows for Overhead Expenditures Is Shown On