Which of the following budgets would be prepared by a manufacturing company but not a merchandising company?

Question

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A manufacturing company would need to prepare a raw materials budget to ensure that they have enough materials to produce their products. Merchandising companies only need to purchase finished goods for resale, so they would not prepare a raw materials budget. The other budgets listed (selling and administrative expense, cost of goods sold, and sales) would be prepared by both manufacturing and merchandising companies.

Which of the Following Budgets Would Be Prepared by a Manufacturing