Budget data are not journalized in cost accounting systems with the exception of
A) the application of manufacturing overhead.
B) direct labor budgets.
C) direct materials budgets.
D) cash budget data.

Question

Quizplus · Accepted Answer

The application of manufacturing overhead is necessary to determine the total cost of production, which is important for determining the cost of goods sold and inventory valuation. Direct labor and direct materials budgets provide information for determining the cost of goods produced, but are not journalized in the cost accounting system. Cash budget data is not relevant to the cost accounting system, as it pertains to the cash inflows and outflows of the organization rather than the cost of producing goods.

Budget Data Are Not Journalized in Cost Accounting Systems with the Exception