Final answer:
The cost of goods sold budget takes inputs from both the ending inventories budget and nonmanufacturing costs budget.
Step-by-step explanation:
The statement is TRUE. The cost of goods sold budget involves calculating the cost of the goods that a business has sold during a specific period. This budget takes inputs from both the ending inventories budget and the nonmanufacturing costs budget.
The ending inventories budget provides information about the value of the goods remaining in inventory at the end of the period. This value is subtracted from the beginning inventory to determine the cost of goods sold.
The nonmanufacturing costs budget includes expenses such as selling and administrative expenses, which are added to the cost of goods sold to determine the total cost of sales.