Which of the Following Is $\textbf{ not }$

question 152

Multiple Choice

Which of the following is $\textbf{ not }$ a component of the master budget?

• A)Budgeted income statement
• B)Direct material purchases budget
• C)Ending inventory and cost of goods sold budget
• D)All of these ans choices are components of the master budget.

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Definitions:

Operating Income

Revenue obtained from the main operations of a business, not including the costs of interest and taxes.

Variable Costs

Expenditures that fluctuate in direct relation to production or sales volumes, such as labor costs and materials used.

Fixed Costs

are expenses that do not change in total over a period of time, regardless of the level of production or sales volume, such as rent or salaries.

Break-even Point

The point where the amount produced or sold generates revenue that matches the overall costs, leading to neither profit nor loss.