Which of the Following Is a True Statement

question 14

Multiple Choice

Which of the following is a true statement?

• A) The direct materials purchases budget is determined from the direct labor budget.
• B) The only budget providing input into the revenue budget is the sales budget.
• C) The direct materials purchases budget and the capital expenditures budget are both determined from the production budget.
• D) The selling and administrative expense budget is input into the forecasted cost of goods sold.

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Definitions:

Annual Interest

The amount of interest due over the course of a year on a loan or investment, calculated as a percentage of the principal.

Bank Account

A financial account maintained by a bank for a customer, allowing for the management, deposit, and withdrawal of funds.

Payment Stream

A series of periodic payments that may be constant or variable, over time, often associated with loans or investments.

Discount Rate

In finance, the interest rate used to determine the present value of future cash flows, or in central banking, the rate charged to commercial banks for loans from the central bank.