A budget that provides the starting point for the preparation of a direct labor cost budget is the:
A) selling and administrative expenses budget.
B) capital expenditures budget.
C) production budget.
D) factory overhead budget.

Question

Quizplus · Accepted Answer

The production budget provides the starting point for the preparation of a direct labor cost budget because it outlines the expected level of production, which is then used to determine how much direct labor will be needed to meet that level of production.

A Budget That Provides the Starting Point for the Preparation