Which of the Following Budgets Is Not Directly Associated with the Production

question 13

Multiple Choice

Which of the following budgets is not directly associated with the production budget?

• A)direct materials purchases budget
• B)sales budget
• C)capital expenditures budget
• D)direct labor cost budget

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its own treasury.

Cost Method

An accounting method in which investments are recorded at their original purchase cost, without recognizing changes in market value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is typically not indicative of its market value.