Which of the Following Is Not Relevant When Calculating the Budget

question 74

Multiple Choice

Which of the following is not relevant when calculating the budget line?

• A)the price of good X
• B)income
• C)the price of good Y
• D)preferences
• E)the relative price of good X in terms of good Y

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Definitions:

Budgeted Overhead

An estimate of all costs associated with production that are not direct labor or direct materials costs, projected for a specific period.

Cash Disbursements

A financial record of money being paid out or disbursed by a company, usually part of the cash outflow in its cash flow statement.

Manufacturing Overhead Budget

An estimate of all manufacturing costs excluding direct materials and direct labor, planned for a specific period.

Direct Labor-Hour

A measure of the amount of time spent by direct labor workers on a specific job or task, often used to allocate labor costs in job-order costing.