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

question 58

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

---

Definitions:

Selling and Administrative Expenses

Costs not directly tied to the production of goods or services, including sales, marketing, and administrative functions.

Units

Represents a measure of quantity or volume, often used in production, inventory, or accounting contexts.

Manufacturing Overhead

refers to indirect factory-related costs incurred when producing a product, which can include costs related to the maintenance and operation of the factory.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing more accurate budgeting in variable cost situations.