The budget or schedule that provides necessary input data for the direct labour budget is the:

A) cash budget.
B) raw materials purchases budget.
C) schedule of cash collections.
D) production budget.

Question

The budget or schedule that provides necessary input data for the direct labour budget is the:A) cash budget.B) raw materials purchases budget.C) schedule of cash collections.D) production budget.

ARIADNA MARTINEZ · Accepted Answer

Final Answer : D, Explanation :  The production budget provides information on the expected level of production, which is necessary to determine the required level of direct labor. Therefore, the production budget is the input data for the direct labor budget. The cash budget is used to plan and control cash inflows and outflows, the raw materials purchases budget is used to plan and control raw materials purchases, and the schedule of cash collections is used to plan and control cash inflows from customers. While these budgets are important, they do not directly inform the direct labor budget.

The budget or schedule that provides necessary input data for the direct labour budget is the:

A) cash budget.
B) raw materials purchases budget.
C) schedule of cash collections.
D) production budget.

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