Best Products, an Atlanta Based Company, Is in the Midst

question 27

Multiple Choice

Best products, an Atlanta based company, is in the midst of its budgeting process. It has already prepared its direct materials usage budget and is now in the process of preparing its direct material purchase budget. In addition to the details gathered to prepare the direct materials usage budget, Best also must know ________.

• A) the target direct materials ending inventory
• B) the ratio of direct materials to cost of goods sold
• C) the beginning direct materials inventory level
• D) the quantity of direct materials to be purchased

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Definitions:

Operating Objectives

Specific, short-term goals set by a business to guide daily operations, geared towards efficiency and effectiveness in achieving the organization's strategy.

Adaptive Organisation

An organization capable of adjusting its strategies, structures, and processes in response to changing internal and external environments to remain viable and competitive.

High-quality Goods

Products that meet or exceed customer expectations in terms of performance, durability, and reliability, often as a result of superior materials, craftsmanship, and quality control processes.