Which of the Following Budgets Needs to Be Prepared Prior

question 104

Multiple Choice

Which of the following budgets needs to be prepared prior to preparing an inventory purchases budget?

• A) Selling and administrative expense budget
• B) Sales budget
• C) Cash budget
• D) All of the answers are correct.

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business or organization, excluding costs related to production or acquisition of goods.

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular venture or investment.

Operating Cash Flow

A measure of the cash generated by a company's regular operational activities over a specific period.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating how much profit a company makes on sales.