Which of the following budgets uses information from the selling and administrative expense budget?
A)Pro-forma budget
B)Budgeted income statement
C)Direct materials purchases budget.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The budgeted income statement uses information from the selling and administrative expense budget to project the expected operating expenses for a certain period of time. The pro-forma budget is a more general budget that incorporates various aspects of the organization's operations, while the direct materials purchases budget focuses on the organization's purchases of raw materials. Therefore, B is the best choice as it specifically uses information from the selling and administrative expense budget.

Which of the Following Budgets Uses Information from the Selling