Which of the Following Budgets Are Needed to Calculate a Budgeted

question 58

Multiple Choice

Which of the following budgets are needed to calculate a budgeted unit cost?

• A) Direct materials purchases budget
• B) Direct labor budget
• C) Overhead budget
• D) Direct materials purchases budget and overhead budget
• E) Direct materials purchases budget, direct labor budget, and overhead budget

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Definitions:

Interest Rate

The percentage of an amount of money charged by lenders to borrowers for the use of money, usually expressed as an annual percentage.

Bonds

Fixed-income securities issued by corporations, municipalities, or governments to finance projects or operations, representing a loan made by an investor to the issuer.

Lenders

Individuals or institutions that provide funds to borrowers under the expectation of being repaid with interest.

Borrowers

Borrowers are individuals or entities that take loans from lenders, with the promise of repaying the loan amount along with interest after a specified duration.