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:

Prediction

The act of making informed guesses about the future values or occurrences based on current data or trends.

Scientific Method

Method of investigation that uses the objective and systematic collection and analysis of empirical data to test theories and hypotheses.

Empirical Data

Information obtained through observation or experimentation that is used as a basis for inference or reasoning.

Systematic Collection

The organized gathering of data according to a defined process that follows a specific pattern or protocol.