Question

For a​ manufacturer, the budgeted income​ statement________. A. does not include depreciation expense B. is​ accrual-based C. includes amounts from the​ sales, cost of goods​ sold, cash, and capital expenditures budgets D. reports cash paid for purchases of direct materials

Answer 1

Answer:

For a​ manufacturer the budgeted income​ statement includes amounts from the​ sales, cost of goods​ sold, cash, and capital expenditures budgets (c)

Explanation:

Like a typical income statement, the Budgeted income statement would show its Sales Forecast, and the resultant costs of producing these volume projected. It will usually follow a trend consistent with the Previous years Business seasonality, peak and lows, and duration of consumer improved disposable income (e.g periods of tax credit, black friday etc).

In addition a Business will want to forecast its Cashflow and Capital expenditure (Balance Sheet) so as to have a general view of what to expect if circumstances turn out as planned and to have a picture of how much growth or decline it is projecting into the future.