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

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Definitions:

Law of Demand

A principle stating that, ceteris paribus, there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.

Quantity Purchased

The total number of units bought of a particular good or service.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.

Equilibrium Price

The cost at which the amount of a product or service consumers want to buy matches the amount that manufacturers are willing to sell.