What Budgets Are Needed to Calculate a Budgeted Unit Cost

question 101

Multiple Choice

What budgets are needed to calculate a budgeted unit cost?

• A)direct materials purchases budget, selling and administration budget, finished goods budget
• B)budgeted income statement, direct labour budget, and cash budget
• C)budgeted balance sheet, selling and administration budget, and finished goods budget
• D)direct materials purchases budget, direct labour budget, and overhead budget

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Definitions:

Analytical Methods

Techniques or procedures used to systematically analyze substances, financial data, or information to deduce qualitative and/or quantitative insights.

Project Analysis

The evaluation of the viability, stability, and profitability of a project through methods like cost-benefit analysis and risk assessment.

Rate of Return

The gain or loss on an investment over a specific period, expressed as a percentage of the investment's cost.

Required Return

The minimum rate of return on an investment that is necessary for it to be considered a viable option, taking into account its risk level.