The Unhappy Company is preparing a budgeted income statement.The dollar amount of Cost of Goods Sold comes from ________.
A)the sales budget
B)the sales forecast
C)the purchases budget
D)the operating expense budget

Question

Quizplus · Accepted Answer

The cost of goods sold reflects the amount spent on purchasing the goods that are sold during the period. The purchases budget is the budget that outlines how much the company plans to spend on purchasing inventory for the budget period, and therefore it is where the dollar amount of Cost of Goods Sold comes from.

The Unhappy Company Is Preparing a Budgeted Income Statement