Which of the following is not a use of the materials purchases budget?
A)It helps managers minimize the resources invested in inventory.
B)It helps managers plan the quantity and timing of purchases of material.
C)It helps ensure the adequate level of inventory.
D)It helps determine the number of units of product to produce.

Question

Quizplus · Accepted Answer

The materials purchases budget helps managers plan the quantity and timing of purchases of material, ensure the adequate level of inventory, and minimize the resources invested in inventory. However, it does not directly determine the number of units of product to produce. That is the responsibility of the production budget.

Which of the Following Is Not a Use of the Materials