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

Question

Quizplus · Accepted Answer

In the case of a manufacturer, the purchases budget is replaced by the production budget, which outlines the specific quantities of each product that need to be manufactured within a specified period of time. This budget is in sync with the sales forecast, which is used to calculate the production requirements.

Budgeting for a Retailer Requires a Purchases Budget to Be