The inventory,purchases,and cost of goods sold budget determines cost of goods sold for the budgeted income statement,ending Merchandise Inventory for the budgeted balance sheet,and merchandise inventory purchases for the cash budget.

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of goods sold budget includes the estimated costs of goods sold and merchandise inventory purchases, which impact the budgeted income statement and cash budget, as well as the ending merchandise inventory balance, which is reflected on the budgeted balance sheet. Therefore, the statement is true.

The Inventory,purchases,and Cost of Goods Sold Budget Determines Cost of Goods