Advanced management accounting(ama) chapter 4 budget and ...
This query is : Resolved
14 April 2015
In the practice manual while i working on problems i got a doubt in an answer described in the practice manual.
Q no 8c:
In that, material usage and purchase budget is need to to prepared.
Material usage budget is taken based on sales and not based on the production.
Is material usage budget shows and units and value of material to be used in the production for the particular year? or units and value of the material used in the goods sold during that year?
Q no 8c:
In that, material usage and purchase budget is need to to prepared.
Material usage budget is taken based on sales and not based on the production.
Is material usage budget shows and units and value of material to be used in the production for the particular year? or units and value of the material used in the goods sold during that year?
CA Subham Verma
(Expert)
15 April 2015
Material usage budget describes units and value of the material used in the production for a particular period to which budget is prepared and not units & value of the material used in goods sold.
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