Identify each item as a component of one of the following budgets.* Each option may be used more than once, and it is possible that one or more of the options may not be used at all.
-Unit selling price

Question

Quizplus · Accepted Answer

The unit selling price is a component of the sales budget, which outlines the expected revenue from sales during a specific period of time.

Answer: G
 The unit selling price is used in determining the expected revenue for the sales budget, the amount of direct materials needed for the production budget, and the costs associated with purchasing those materials in the direct materials purchases budget. Therefore, it is a component of all three budgets.

Identify Each Item as a Component of One of the Following