The Direct Materials Budget Shows The Total Direct Materials Needed for Production Is
A) 21,000

question 65

Multiple Choice

The direct materials budget shows: $\begin{array}{ll}\text { Desired ending direct materials } & 48,000 \text { pounds } \\\text { Total materials required } & 69,000 \text { pounds } \\\text { Direct materials purchases } & 63,200 \text { pounds }\end{array}$ The total direct materials needed for production is

• A) 21,000 pounds.
• B) 5,800 pounds.
• C) 15,200 pounds.
• D) 132,200 pounds.

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Definitions:

Derived Demand

Demand for a commodity, service, etc., that is a consequence of the demand for something else.

Inputs Demand

The requirement for resources and materials necessary to produce goods and services in an economy.

Secondary Demand

The desire for products and services that derive from the demand for another product or service.

Derived Demand

The demand for a good, service, or factor of production resulting from the demand for another good or service.