Which of the following statements concerning the cash disbursements amount in the cash budget is true in a manufacturing setting, but not true a merchandise setting?
A) The cash disbursements amount is no longer based off of the purchasing budget.
B) The cash disbursements amount includes planned disbursements for ending inventory.
C) The cash disbursements amount includes planned disbursements for conversion costs.
D) The cash disbursements does not need to equal changes in finished goods inventory.
Correct Answer:
Verified
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