Which of the Following Is Not Part of the Operating

question 108

Multiple Choice

Which of the following is not part of the operating budget?

• A)Inventory,purchases and cost of goods sold budget
• B)Cash budget
• C)Sales budget
• D)Budgeted income statement

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process, used as a measure for allocating labor costs to products or services.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for managers.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Overhead Incurred

The actual indirect costs experienced by a company during production, including utilities, rent, and salaries of employees not directly involved in production.