Which of the Following Is Not a Sub-Plan of the Purchasing

question 14

Multiple Choice

Which of the following is not a sub-plan of the purchasing plan? 

• A) The purchased materials budget. 
• B) The purchased budget indirect materials. 
• C) The consumables budget. 
• D) The purchasing departmental budget.

---

Definitions:

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.

Payback Period

Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.