Which of the Following Budgets Are Needed to Calculate a Budgeted

question 58

Multiple Choice

Which of the following budgets are needed to calculate a budgeted unit cost?

• A) Direct materials purchases budget
• B) Direct labor budget
• C) Overhead budget
• D) Direct materials purchases budget and overhead budget
• E) Direct materials purchases budget, direct labor budget, and overhead budget

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Definitions:

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.