Required information for preparing a ________ budget includes types and capabilities of machines and availability of materials.
A) production
B) capital
C) cash
D) sales
E) cost

Question

Quizplus · Accepted Answer

The types and capabilities of machines and availability of materials are important factors that must be considered when preparing a production budget. A production budget helps to determine the quantity of goods that can be produced during a specific period, which in turn affects the sales, cost, and cash budgets. Capital budget is concerned with long-term investments in fixed assets like machinery, building, etc. Cash budget is concerned with cash inflows and outflows. Sales budget is concerned with the expected revenue from sales. Cost budget is concerned with the estimated expenses involved in producing the goods or services.

Required Information for Preparing a ________ Budget Includes Types and Capabilities