On the Direct Materials Budget,the Total Quantity of Direct Materials

question 21

Multiple Choice

On the direct materials budget,the total quantity of direct materials needed is computed as:

• A)units to be produced + desired end inventory of DM - beginning inventory of DM.
• B)quantity needed for production + desired end inventory of DM - beginning inventory of DM.
• C)units to be produced - desired end inventory of DM +beginning inventory of DM.
• D)quantity needed for production - desired end inventory of DM + beginning inventory DM.

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Definitions:

Oil Well Service Company

An oil well service company provides a range of services to the oil and gas industry, including drilling, maintenance, and completion services for oil wells.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels during a period.

Planning Budget

A budget that outlines the expected revenues, expenses, and resource allocations over a specific period, used for strategic financial planning.

Spending Variance

The difference between the budgeted amount for spending and the actual amount spent.