The Inventory Purchases Budget Is Based on Which Budget

question 102

Multiple Choice

The inventory purchases budget is based on which budget?

• A) Cash budget
• B) Sales budget
• C) Selling and administrative expense budget
• D) None of these answers is correct.

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Definitions:

Short-term Financial

Refers to the aspect of finance that deals with assets and liabilities which are expected to be turned into cash or paid within a year.

Long-term Goal

An objective or aim that is planned to be achieved over an extended period, typically over a year, focusing on significant achievements for the future.

Integrated Performance

The comprehensive assessment of all aspects of performance, including financial, operational, and strategic dimensions, in an organization.

Balanced Scorecard

A strategic planning and management system that is used by organizations to communicate what they are trying to accomplish, align the day-to-day work that everyone is doing with strategy, prioritize projects, products, and services, and measure and monitor progress towards strategic targets.