The Number of Units in the Sales Budget and the Production

question 76

Multiple Choice

The number of units in the sales budget and the production budget may differ because of a change in:

• A)direct material inventory levels.
• B)sales returns and allowances.
• C)overhead charges.
• D)finished goods inventory levels.

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.

Budgeted Cost

An estimated cost anticipated for a specified period of time or activity.