13* To calculate how much direct materials to purchase, the first point to consider is:O a.actual materials purchase from the previous year.O b. budgeted cost of direct materials.O c. budgeted sales.O d. budgeted production.O e. None of the given answers.

The correct answer is b) Budgeted cost of direct materials .

Answered: aterials purchase from the previc d…

Business

Accounting

aterials purchase from the previc d cost of direct materials.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11MC: Which of the following statements is not correct? A. The sales budget is computed by multiplying...

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

13*

To calculate how much direct materials to purchase, the first point to consider is:
O a.
actual materials purchase from the previous year.
O b. budgeted cost of direct materials.
O c. budgeted sales.
O d. budgeted production.
O e. None of the given answers.

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