The Direct Materials-Purchased Budget

Multiple Choice

The direct materials-purchased budget:

A) identifies the quantity of direct materials that will be used to meet production needs during the specified time period.
B) identifies the quantity of direct materials that must be purchased to meet production needs during the specified time period.
C) uses this formula: beginning inventory plus net purchases minus ending inventory.
D) is equal to direct materials needed for production plus beginning inventory minus desired ending inventory.