Which One of the Following Is a Plan That Will

question 64

Multiple Choice

Which one of the following is a plan that will allow a manufacturing firm to satisfy its sales goals and have on hand the desired amount of inventory at the end of the budget period?

• A) Direct materials usage budget.
• B) Sales budget.
• C) Selling and administrative expense budget.
• D) Production budget.
• E) Sales forecast.

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Definitions:

Scrap Value

The estimated resale value of an asset at the end of its useful life, also known as salvage value.

Incremental Annual

Incremental annual refers to the year-over-year changes or additional amounts in revenue, cost, or other financial metrics.

Internal Rate

Typically refers to the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Discount Rate

A discount rate employed to ascertain the present worth of future cash flows within discounted cash flow analysis.