Which of the Following Is Not Correct Regarding the Manufacturing

question 76

Multiple Choice

Which of the following is not correct regarding the manufacturing overhead budget?

• A)Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
• B)Manufacturing overhead costs should be broken down by cost behavior.
• C)The manufacturing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor.
• D)A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.

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Definitions:

Consignee

The person or company that receives goods for sale, storage, or shipment on behalf of another, holding goods without taking ownership.

FOB Destination

A shipping term where the seller is responsible for the delivery of goods to a specific destination, absorbing all costs and risks until the goods are received by the buyer.

Perpetual Inventory System

A method of inventory management where updates to inventory records are made continuously as transactions occur.

Net Price Method

An accounting method where discounts are not recorded in the accounting records; instead, purchases are recorded at the net purchase price.