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:

Operating Segments

Components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.

Financial Reporting

The process of disclosing financial results and related information to stakeholders and the public, typically through formal documents.

Reportable Segments

Portions of a business that have distinct financial information available and are regularly reviewed by the company's management for decision-making purposes.

GAAP

Generally Accepted Accounting Principles, which are a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.