What Budgets Are Needed to Calculate a Budgeted Unit Cost

question 112

Multiple Choice

What budgets are needed to calculate a budgeted unit cost?

• A) budgeted income statement, direct labour budget, and cash budget
• B) direct materials purchases budget, direct labour budget, and manufacturing overhead budget
• C) budgeted balance sheet, selling and administration budget, and finished goods inventory budget
• D) direct materials purchases budget, selling and administration budget, finished goods inventory budget

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Definitions:

Consumption

The use of goods and services by households, relating to the purchasing and utilization of goods and services for direct use in day-to-day life.

Exponential

Referring to a mathematical function or growth pattern that increases rapidly in proportion to the growing total number or size.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity demanded.

Hotel Rooms

Individual units within a hotel offering accommodation and various amenities to guests; often charged on a nightly basis.