Question

Identify the true statements about the cost of goods sold budget.

Answer 1

The cost of goods sold budget is a financial plan that estimates the cost of producing goods or services to be sold during a specific period of time. It is an important component of the overall budgeting process for a business and provides insights into the expenses directly related to production.

Step-by-step explanation:

True statements about the cost of goods sold budget:

1. The cost of goods sold budget is a financial plan that estimates the cost of producing goods or services to be sold during a specific period of time.
2. It is an important component of the overall budgeting process for a business and provides insights into the expenses directly related to production.
3. The cost of goods sold budget takes into account factors such as direct materials, direct labor, and manufacturing overhead costs.