Misrepresentation of a Material Fact Cannot Occur Through Silence

question 42

True/False

Misrepresentation of a material fact cannot occur through silence.

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Definitions:

Production Budget

A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.

Direct Materials Budget

A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.

Direct Labor Budget

A detailed plan that shows the direct labor-hours required to fulfill the production budget.

Production Budget

An estimate of the total amount of production, in units, that a company needs to meet its sales goals and inventory policies.