Which of the Following Is Not True About the Direct

question 48

Multiple Choice

Which of the following is not true about the direct materials purchases budget?

• A) It is determined by the anticipated change in the direct materials inventory level and the production budget.
• B) The direct materials purchases budget does not affect the forecasted balance sheet.
• C) The direct materials purchases budget is expressed in units and dollars.
• D) It is used in preparing the budgeted income statement.

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Definitions:

Contract

A contract among two or more entities that holds legal enforceability.

Authority

The right or power assigned to an entity or individual to govern, make decisions, or enforce obedience.

Revocation

The official cancellation or annulment of a decree, decision, or promise, typically within legal contexts such as wills, contracts, or licenses.

Renunciation

The formal rejection or abandonment of a claim, right, possession, or responsibility.