A plan that shows the predicted costs for direct materials, direct labor, and overhead to be incurred in manufacturing the units in the production budget is called the:
A) Sales budget.
B) Merchandise purchases budget.
C) Production budget.
D) Rolling budget.
E) Manufacturing budget.

Question

Quizplus · Accepted Answer

The plan described in the question is the Manufacturing budget. It shows the predicted costs for direct materials, direct labor, and overhead to be incurred in manufacturing the units in the production budget. Therefore, option E is the correct answer. The other options are not relevant to the question at hand.

A Plan That Shows the Predicted Costs for Direct Materials