What information is found on the direct materials budget? How many units of direct materials should be purchased?
I. How much is the cost of direct materials to be purchased?
A)I only
B)II only
C)Both I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

I. The quantity and cost of materials needed for production
The direct materials budget includes information on the quantity and cost of the raw materials needed for production. This is based on the production budget and the materials required for each unit of production.

II. The timing of purchases and payments
The direct materials budget also includes information on the timing of purchases and payments for the raw materials. This is important for managing cash flow and ensuring that materials are available when needed for production.

What Information Is Found on the Direct Materials Budget? How