Which of the Following Is a Financial Budget

question 62

Multiple Choice

Which of the following is a financial budget?

• A) budgeted balance sheet
• B) cash receivables budget
• C) production budget
• D) cost of goods sold budget

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Definitions:

Estimated Ending Inventory

An approximation of the value or quantity of inventory that a company expects to have at the end of a period, calculated using the cost of goods sold formula.

Gross Profit

The difference between revenue from sales and the cost of goods sold, before accounting for operating expenses.

Inventory Cost

The total cost associated with buying, producing, and storing inventory, including purchase prices, production costs, and related expenses.

Cost Flow Assumptions

Refers to the methods used to determine the cost of inventory sold and remaining inventory value, including FIFO, LIFO, and weighted average.