Select the correct equation format for the purchases budget.
A) Beginning inventory + expected sales = required purchases.
B) Cost of budgeted sales + beginning inventory - desired ending inventory = required purchases.
C) Beginning inventory + expected sales - desired ending inventory = required purchases.
D) Cost of budgeted sales + desired ending inventory - beginning inventory = required purchases.

Question

Quizplus · Accepted Answer

The purchases budget is calculated by taking the cost of budgeted sales, adding the desired ending inventory, and subtracting the beginning inventory to determine the required purchases.

Select the Correct Equation Format for the Purchases Budget