Budgeting for a retailer requires a purchases budget to be prepared. When budgeting for a manufacturer the purchases budget is replaced by a:
A) Budgeted income statement
B) Budgeted cost of sales
C) Production budget
D) Expense budget

Question

Quizplus · Accepted Answer

For a manufacturer, the purchases budget is replaced by a production budget. The production budget outlines the number of units that must be produced to meet sales goals and inventory requirements, which is essential for planning the use of manufacturing resources.

Budgeting for a Retailer Requires a Purchases Budget to Be