The Starting Point for Preparing a Monthly Budget Is

question 6

Multiple Choice

The starting point for preparing a monthly budget is:

• A)Projecting sales.
• B)Projecting production.
• C)Projecting cash inflows.
• D)Projecting cash outflows.
• E)Projecting material needs.

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Definitions:

Prime Costs

The direct costs of production, typically consisting of direct materials and direct labor.

Indirect Labour

Workers in a manufacturing process whose activities are not directly related to the production of specific goods or services, such as maintenance staff and managers.

Cost of Goods Purchased

The total expense for raw materials and goods acquired for resale by a company during a specific period, excluding any indirect costs.

Transportation Inward

Costs incurred to bring materials to a business, often included as part of inventory costs.