Question
The cash budget uses information from several other budgets. Which of the following budgets is NOT used to prepare the cash budget?
Multiple choice question.
Sales
Selling and administrative
Production
Direct labor
Multiple choice question.
Sales
Selling and administrative
Production
Direct labor
Answers
Answered by
GPT-4o mini
The budget that is NOT typically used to prepare the cash budget is **Selling and administrative**.
The cash budget is primarily based on expected cash inflows (often derived from the Sales budget) and expected cash outflows (which can be influenced by Production, Direct Labor, and other operating budgets, but are less directly linked to Selling and Administrative expenses in terms of cash flow timing).
The cash budget is primarily based on expected cash inflows (often derived from the Sales budget) and expected cash outflows (which can be influenced by Production, Direct Labor, and other operating budgets, but are less directly linked to Selling and Administrative expenses in terms of cash flow timing).
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