Which of the Following Is the Basic Formula of the Direct

question 127

Multiple Choice

Which of the following is the basic formula of the direct materials usage budget?

• A) Ending inventory of direct materials + direct materials purchased and used during the period = direct materials to be used this period
• B) Beginning inventory of direct materials + direct materials purchased and used during the period = direct materials to be used this period
• C) units used in production + target ending inventory - beginning inventory = purchases to be made for the budget period
• D) units used in production + target beginning inventory - ending inventory = purchases to be made for the budget period

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Definitions:

Different Times

Moments or periods that are not the same, varying in many possible ways such as duration, significance, or point in history.

Correlation Coefficient

A numerical index that ranges from -1 to 1, reflecting the strength and direction of the relationship between two variables.

Standard Deviation

A gauge of the degree to which a group of numbers varies or is scattered.

Mean

In statistical terms, the mean refers to the average of a set of numbers calculated by adding all the numbers together and then dividing by the count of those numbers.