In a Master Budget,the Schedule of Cash Disbursements for Purchases

question 62

Multiple Choice

In a master budget,the schedule of cash disbursements for purchases of inventory is used to prepare the ________.

• A) operating expense budget
• B) purchases budget
• C) capital budget
• D) cash budget

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Definitions:

R&D

Research and Development; activities in connection with corporate or governmental innovation, encompassing the work towards the development of new products or procedures.

Economic Profit

The financial surplus a company has after deducting all types of costs, including visible and hidden, from its gross income.

Existing Technology

The current state of technological development or the sum of the technological innovations available in any given field or society.

Process Innovation

The introduction of a new or significantly improved production or delivery method.