When a Manager Is Told to Maximize the Revenues from the Sales

question 28

Multiple Choice

When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach.

• A)quality
• B)revenue
• C)operational
• D)fixed

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Yards

A measurement unit equal to three feet or 0.9144 meters, often used in expressing lengths or distances.

Factory Overhead Cost Budget

A budget that estimates the cost for each item of factory overhead needed to support budgeted production.

Total Variable Cost

The sum of all costs that vary directly with the level of production, including materials and direct labor.