What budgets are needed to calculate a budgeted unit cost?

Question

Quizplus · Accepted Answer

To calculate a budgeted unit cost, we need to consider the costs of direct materials, direct labor, and overhead. Therefore, the budgets needed are the direct materials purchases budget, direct labor budget, and overhead budget. Option A includes a selling and administration budget and a finished goods budget, which are not necessary to calculate a unit cost. Option B includes a budgeted income statement and a cash budget, which are not relevant to calculating a unit cost. Option C includes a budgeted balance sheet, which is not a budget used in calculating a unit cost.

What Budgets Are Needed to Calculate a Budgeted Unit Cost