Select the Correct Equation Format for the Purchases Budget

question 2

Multiple Choice

Select the correct equation format for the purchases budget.

• A) Beginning inventory + expected sales = required purchases.
• B) Cost of budgeted sales + beginning inventory - desired ending inventory = required purchases.
• C) Beginning inventory + expected sales - desired ending inventory = required purchases.
• D) Cost of budgeted sales + desired ending inventory - beginning inventory = required purchases.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain it.

Marginal Efficiency

The additional benefit received from consuming or producing one more unit of a good or service.

Capital

Refers to any financial asset, including cash, equipment, and buildings, used in production of goods or services.

Investment Project

A project undertaken by a company or an individual in expectation of generating future financial returns.