A manufacturing budget should include a list of equipment to be scrapped and additional equipment to be purchased if the proposed production budget is carried out.

Question

Quizplus · Accepted Answer

A manufacturing budget primarily focuses on the costs associated with the production process, including direct materials, direct labor, and manufacturing overhead, rather than listing equipment to be scrapped or purchased. Equipment needs are typically addressed in a separate capital expenditure budget.

A Manufacturing Budget Should Include a List of Equipment to Be