If materials are purchased on account, then changes in Accounts Payable must be considered when preparing the Direct Materials Budget.

Name: If materials are purchased on account, then changes in Accounts Payable must be considered when preparing the Direct Materials Budget.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

When materials are purchased on account, the amount goes into Accounts Payable, affecting the cash flow and requiring consideration in the Direct Materials Budget for accurate financial planning.

If Materials Are Purchased on Account, Then Changes in Accounts