Of the Following Budgets,which One Is Least Likely to Be

question 142

Multiple Choice

Of the following budgets,which one is least likely to be determined by the dictates of top management?

• A)sales
• B)material usage
• C)revenues
• D)general and administrative

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct labor, direct materials, and variable manufacturing overhead) in the cost of goods sold, with fixed manufacturing overhead treated as period costs.

Direct Labor

The wages and related expenses for workers who are directly involved in the manufacturing of products.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.