When Preparing a Direct Materials Budget, the Required Purchases of Raw

question 73

Multiple Choice

When preparing a direct materials budget, the required purchases of raw materials in units equals:

• A) raw materials needed to meet the production schedule + desired ending inventory of raw materials − beginning inventory of raw materials.
• B) raw materials needed to meet the production schedule − desired ending inventory of raw materials − beginning inventory of raw materials.
• C) raw materials needed to meet the production schedule − desired ending inventory of raw materials + beginning inventory of raw materials.
• D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.

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Definitions:

Focus Strategy

A competitive strategy where a company chooses to serve a particular segment or group of segments within a market, tailoring its products or services to better satisfy the specific needs of those segments.

Service Productivity

A measure of the efficiency of a service operation, typically calculated as the ratio of outputs (services provided) to inputs (resources consumed) in rendering the service.

Flexible Manufacturing System

A system that allows for the easy adaptation of the production equipment and processes to manufacture different types of products or change production volumes in response to market demands.

Benefits

Advantages or positive outcomes resulting from actions, activities, or participation in certain programs or initiatives.