Which of the Following Budgets Would NOT Be Prepared for a Merchandising

question 45

Multiple Choice

Which of the following budgets would NOT be prepared for a merchandising firm?

• A)Direct labor budget
• B)Cash budget
• C)Capital expenditures budget
• D)Sales budget

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Definitions:

Return on Investment

A measure of performance that evaluates the efficiency or profitability of an investment relative to its cost.

Selling Price

The amount of money a buyer pays to purchase a product or service.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.