Which of the Following Is True of the Sales Budget

question 56

Multiple Choice

Which of the following is true of the sales budget?

• A) It provides sales data that is used to prepare financial statements for external reporting purposes.
• B) It captures the variable and fixed expenses of the business.
• C) It is used in the production budget.
• D) It shows the cost of expected production in a period.

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods or the provision of services, such as wages for factory workers or technicians.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, aside from the costs of direct labor and direct materials.

Direct Materials

Raw materials directly traced and included in the finished product.

Master Budget

A comprehensive financial plan that consolidates various detailed budgets within a company for a specific period.