Asked by Jonathan Richardson on Jun 07, 2024
Verified
A budget that includes indirect materials, indirect labour and other indirect manufacturing costs is
A) an overhead budget.
B) a cash budget.
C) an administrative expense budget.
D) a summary budget.
Overhead Budget
A financial plan that estimates the expected overhead costs for a business over a certain period.
Indirect Materials
Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.
Indirect Labour
Labor costs associated with employees who support the production process but do not directly work on the production of goods or services, such as maintenance staff and supervisors.
- Understand the different types of budgets within an organization (overhead, cash, etc.).
Verified Answer
Learning Objectives
- Understand the different types of budgets within an organization (overhead, cash, etc.).
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