A manufacturer develops budgets for the direct materials, direct labor, and overhead that will be required in the production process from which of the following?

A. The selling and administrative expenses budget.

B. The budget for merchandise purchases.

C. The sales budget.

D. The production budget.

E. The cash budget.

Question

Alyson Little

Business

16 June, 12:58

A manufacturer develops budgets for the direct materials, direct labor, and overhead that will be required in the production process from which of the following?

A. The selling and administrative expenses budget.

B. The budget for merchandise purchases.

C. The sales budget.

D. The production budget.

E. The cash budget.

+3

Answers (1)

Know the Answer?

Finley Skinner · Answer 1

The correct answer is letter "D": The production budget.

Explanation:

The production budget is the expected production of a manufacturing company. It combines the projection of sales of the firm for the current period and the number of assets needed to achieve the production level necessary. It is important for a company to have a clear idea of what investment will be needed to fulfill those expectations.