Question

In a manufacturing company, the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget are all based on the [blank] budget.

Answer 1

In a manufacturing company, the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget are all based on the **production budget**. The production budget outlines the number of units that need to be produced to meet sales demands and inventory levels, and it serves as the foundation for all related manufacturing cost budgets.