Budgeting for a Retailer Requires a Purchases Budget to Be

question 23

Multiple Choice

Budgeting for a retailer requires a purchases budget to be prepared.When budgeting for a manufacturer the purchases budget is replaced by which budget?

• A)Expense budget
• B)Budgeted income statement
• C)Production budget
• D)Budgeted cost of sales

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Definitions:

Planned Obsolescence

A strategy where products are designed with a limited useful life or undergo frequent changes, compelling consumers to purchase new products more often.

Pricing Strategy

The approach a company takes to setting the price of its products or services, based on costs, market demand, competitor pricing, and other factors.

Estimating Costs

The process of predicting the financial resources required to complete a project, production, or any business activity.

Estimating Demand

The process of forecasting the amount of product or service that consumers will be willing to buy at various prices during a specified period.