Asked by Jonathan Richardson on Jun 07, 2024

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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.).
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CH
Chelsea HudsonJun 09, 2024
Final Answer :
A
Explanation :
An overhead budget includes indirect materials, indirect labour, and other indirect manufacturing costs. This budget is specifically focused on the expenses associated with running the manufacturing process and is sometimes called a factory overhead budget.