Question

The direct materials and direct labor budgets provide information for preparing the Group of answer choices sales budget. production budget. manufacturing overhead budget. cash budget.

Answer 1

Answer:

The correct answer is the last option: Cash budget.

Explanation:

To begin with, the term known as "Cash Budget" in the field of finances and business management refers to the type of budget that specifically focus on the estimation of the cash flows of the company in a particular amount of time. Therefore that this budget helps the organization to see how much of cash they are having and more importantly how it flows over a given period of time that could be either a week, a month or a year, etc. It is necessary to manage to a certain level of sales and control de expenditures in order to have a good cash flow which is monitored by the cash budget.