When preparing the budgeted income statement of a merchandising company,the amount of cost of goods sold can be taken from the ________.
A) budgeted balance sheet
B) cost of goods sold budget
C) inventory, purchases, and cost of goods sold budget
D) capital expenditures budget

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of goods sold budget includes the estimated cost of goods sold, beginning and ending inventory, and purchases for a period of time. Therefore, the amount of cost of goods sold can be taken from this budget when preparing the budgeted income statement of a merchandising company. The other options listed do not provide information directly related to cost of goods sold.

When Preparing the Budgeted Income Statement of a Merchandising Company,the