One of the limitation of the direct materials purchases budget is that it reflects only the quality of direct materials purchases.

Question

Quizplus · Accepted Answer

The direct materials purchases budget includes not only the quantity of direct materials to be purchased but also the cost of those materials, the timing of the purchases, and the vendors from whom the materials will be purchased. Therefore, the budget reflects not only the quality but also the other important aspects of direct materials purchases.

One of the Limitation of the Direct Materials Purchases Budget