Author Question: Best products, an Atlanta based company, is in the midst of its budgeting process. It has already ... (Read 26 times)

nramada · **on:** Jul 5, 2018

Best products, an Atlanta based company, is in the midst of its budgeting process. It has already prepared its direct materials usage budget and is now in the process of preparing its direct material purchase budget.

In addition to the details gathered to prepare the direct materials usage budget, Best also must know ________.
A) the level of direct material inventory to be maintained
B) the ratio of direct materials to cost of goods sold
C) the beginning direct materials inventory level
D) the quantity of direct materials to be purchased

Question 2

Which of the following accounts will be closed to the capital account at the end of the fiscal year?
a. Rent Expense
b. Fees Earned
c. Income Summary
d. Depreciation Expense