In Preparing One of Its Budgets, Hartz, Inc

question 38

Multiple Choice

In preparing one of its budgets, Hartz, Inc.used information from both the direct materials and direct labour budgets.Which budget was Hartz preparing?

• A)sales budget
• B)production budget
• C)manufacturing overhead budget
• D)cash budget

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Definitions:

Requisitions

Official requests or demands for goods, services, or resources, often used in business or governmental operations.

Direct Labor Cost

The salaries given to employees who are directly engaged in manufacturing products or providing services.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end user.

Indirect Materials

Materials used in the production process that are not directly traceable to individual products or are not cost-effective to trace, such as lubricants and cleaning supplies.