The cost of goods sold budget:
A) Includes beginning inventories
B) Combines manufacturing overhead and support costs into one category
C) Includes revenues
D) Includes cash disbursements

Question

Quizplus · Accepted Answer

The cost of goods sold budget only includes the costs associated with the production of goods or services, and beginning inventories are a part of these costs. Choice B is incorrect because manufacturing overhead and support costs are typically separated into different categories on a budget. Choice C is incorrect because revenues are not a part of cost of goods sold. Choice D is incorrect because the cost of goods sold budget only includes costs, not cash disbursements.

The Cost of Goods Sold Budget