What sources of information does a manufacturing company use to determine cost of goods sold?

Question

Quizplus · Accepted Answer

A manufacturing company would use the materials budget, the labour budgets and the overhead budgets to determine the cost of goods sold. These budgets provide information on the cost of raw materials, direct labour, and overhead expenses related to production, which are all necessary factors in calculating the cost of goods sold. The sales and cost of purchases budgets provide important information for the company's overall financial planning, but they are not sufficient on their own to determine the cost of goods sold.

What Sources of Information Does a Manufacturing Company Use to Determine