Which One of the Following Budgets Would Be Prepared for a Manufacturer

question 88

Multiple Choice

Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser?

• A) Direct labor budget
• B) Cash budget
• C) Sales budget
• D) Budgeted income statement

Understand the concept of Net Present Value (NPV) and its application in investment decisions.

Analyze the feasibility of investments using NPV and cost of capital.

Determine the factors influencing the choice between different technologies or business strategies based on costs.

Understand short-run and long-run decision-making processes for operational and investment purposes.

---

Definitions:

Future Earnings

Refers to the anticipated income or profit that a person, company, or investment is expected to generate in the future.

Entire Economy

All the economic activities and interactions that take place within a country, including production, consumption, investment, and trade.

Individual Stock

A share representing ownership in a specific company, entitling the holder to a claim on part of the company’s assets and earnings.