Which of the following statements does not correctly describe relationships within the master budget? (More than one answer may be correct.)
A) The production budgets are based in large part upon the sales forecast.
B) In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.
C) The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.
D) The capital expenditures budget affects the direct materials budget.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements does not correctly describe relationships within the master budget? (More than one answer may be correct.)
A) The production budgets are based in large part upon the sales forecast.
B) In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.
C) The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.
D) The capital expenditures budget affects the direct materials budget.

Which of the Following Statements Does Not Correctly Describe Relationships