Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser?
A) Direct labor budget
B) Cash budget
C) Sales budget
D) Budgeted income statement

Question

Quizplus · Accepted Answer

A direct labor budget is specific to a manufacturer because it outlines the amount of labor needed to produce a certain amount of units. This budget would not be necessary for a merchandiser as they do not manufacture goods and therefore do not have direct labor costs. The other budgets listed (cash budget, sales budget, and budgeted income statement) would be prepared for both manufacturers and merchandisers.

Which One of the Following Budgets Would Be Prepared for a Manufacturer