Which of the Following Represents the Correct Order in Which

question 81

Multiple Choice

Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?

• A)Sales budget,cash budget,direct materials budget,direct labor budget
• B)Production budget,sales budget,direct materials budget,direct labor budget
• C)Sales budget,cash budget,production budget,direct materials budget
• D)Selling and administrative expense budget,cash budget,budgeted income statement,budgeted balance sheet

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered or reversed.

Incremental Overhead Costs

Additional overhead expenses directly resulting from a specific business decision or activity.

Relevant Costs

Costs that should be considered when making decisions because they will be affected by the decision.

Markup Percentage

The percentage difference between the cost of a good or service and its selling price, indicating the gross profit margin.