Identify Each Item as a Component of the Production Budget

question 194

Multiple Choice

Identify each item as a component of the production budget or the direct materials purchases budget.
-ending inventory of product

• A)production budget
• B)direct materials purchases budget

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Definitions:

Decreases Risk

Involves actions or strategies aimed at reducing the potential for loss or harm in various contexts, such as financial investments, business operations, or personal decisions.

Reduces Liquidity

Refers to any action or situation that decreases the ease with which assets can be converted into cash without significant loss in value.

Divestiture

Sale of assets by a company.

Merger

A corporate strategy of combining two or more companies into a single company in order to enhance competitive advantages or expand market share.