Which of the following statements is not true? Budgeted sales volumes and terms of trade will enable monthly budgeted cash inflows from sales to be calculated. The budgeted direct costs of sales depend upon the volume of budgeted sales and production. Budgeted fixed costs in the budgeted statement of profit or loss are allocated to each month on the accruals basis, while payments for budgeted fixed costs in the cash budget are allocated to the months in which they are paid. Budgeted net cash flow for the month = the total budgeted monthly cash receipts + the total budgeted monthly cash payments

Which of the following statements is not true? Budgeted sales volumes and terms of trade will enable monthly budgeted cash inflows from sales to be calculated. The budgeted direct costs of sales depend upon the volume of budgeted sales and production. Budgeted fixed costs in the budgeted statement of profit or loss are allocated to each month on the accruals basis, while payments for budgeted fixed costs in the cash budget are allocated to the months in which they are paid. Budgeted net cash flow for the month = the total budgeted monthly cash receipts + the total budgeted monthly cash payments

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11MC: Which of the following statements is not correct? A. The sales budget is computed by multiplying...

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