Respuesta :
Answer:
Statement A, C and D
Explanation:
a. All the direct expenses budget is prepared in order to compute direct material, direct labour and other manufacturing overheads in order to compute the production budget cost. As all these are essentially required in order to make a production budget.
b. The first budget is usually the revenue or sales forecast budget.
c. Direct material to be bought = Direct Materials required in production + Closing inventory to be maintained - Opening inventory already available.
d. Cash budget not only comprises of inflow, but outflow is also as important as inflow. When all the incomes and expenses are budgeted then cash budget is prepared.
Answer:
c. When preparing a direct materials budget, the units of raw material needed to meet production should be added to desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased.
Explanation:
The master budget refers to the budget in which the expenses, sales, purchases, are recorded
It can be sales budgets, purchase budgets, etc that comes under the operating budget
While preparing the direct material budget, the raw material required to be purchased should be find out by using the following formula
= Ending inventory balance + cost of sales - beginning inventory balance
Or we can say
Cost of goods sold = beginning inventory + raw material purchase - ending inventory
hence, the correct option is c.
