It is least likely that a production budget revision would cause a revision in the
A)capital budget.
B)cash budget.
C)purchases budget.
D)pro forma balance sheet.

Question

Quizplus · Accepted Answer

The capital budget is primarily concerned with long-term investment decisions, such as acquiring new machinery, buildings, or other major capital investments, rather than the short-term operational changes reflected in a production budget revision. Changes in production plans typically affect the cash budget, purchases budget, and pro forma balance sheet more directly by altering immediate cash flow needs, material purchase requirements, and current asset and liability balances.

It Is Least Likely That a Production Budget Revision Would