The direct labour budget is developed from the:
A) sales budget.
B) cash budget.
C) production budget.
D) materials budget.

Question

Quizplus · Accepted Answer

The direct labour budget is developed from the production budget as it outlines the amount of labour required for the production process. The production budget provides information on the number of units to be produced during a specific period, which helps in determining the amount of labour required for the production process. The sales budget outlines the expected sales for the period, the cash budget provides information on the expected cash inflows and outflows for the period, and the materials budget outlines the raw materials required for production. While these budgets can indirectly affect the direct labour budget, they are not directly used in developing it.

The Direct Labour Budget Is Developed from The