Use the Information Below to Answer the Following Question(s)

question 86

Multiple Choice

Use the information below to answer the following question(s) .Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000.Cost of units sold is expected to be 40 percent of sales.All units are paid for in the month following purchase.The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired.Beginning accounts payable is $152,000.
-Boone Hobbies budgeted purchases for next month is expected to be

• A)$240,000.
• B)$264,000.
• C)$225,000.
• D)$360,000.
• E)$244,000.

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Definitions:

Top Management

The highest level of managers in an organization, responsible for controlling and directing the overall operations.

Control Of Operations

The oversight and management of core business activities to ensure efficiency, effectiveness, and alignment with organizational objectives.

Flexible Budget Report

A budget that adjusts or flexes with changes in volume or activity, providing a more useful comparison of actual to budgeted performance.

Production

The process of creating goods or services using labor, technology, materials, and other inputs.