In which of the following company types would the manager use a direct materials budget?

Name: In which of the following company types would the manager use a direct materials budget?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A direct materials budget is used by manufacturing companies to plan and control their use of raw materials in production. Merchandising and service companies do not typically have a need for a direct materials budget as they do not produce or manufacture their own products.

In Which of the Following Company Types Would the Manager