Explanation The merchandising companies are companies who buy goods and services from the manufacturer and sold to the retailer or end consumer. Therefore merchandiser has the cost of goods sold which is transportation & holding cost, inventory, and purchases. a. Direct materials budget: The merchandising companies have a number of budgets but the direct materials budget is not the unique budget. b. Operating expenses budget: Almost all the companies prepare operating expenses budget...

5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Chapter 9, Problem 8QC

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The Budget which is unique to merchandising companies.

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Chapter 9, Problem 7QC

Chapter 9, Problem 9QC

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What is a sales budget? a. A plan of items to be sold b. A plan of how much an item will cost c. A plan for how much money should be made in a given period. d. A plan for tracking an inventory and how much they sell

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Understanding the components of the master budget The following are some of the components included in the master budget of a merchandising company. Budgeted balance sheet Sales budget Capital expenditures budget Budgeted income statement Cash budget Inventory, purchases, and cost of goods sold budget Budgeted statement of cash flows Selling and administrative expense budget List the items of the master budget in order of preparation.

Chapter 9 Solutions

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The Budget which is unique to merchandising companies.

Solution Summary: The author explains that the cost of goods sold, inventory, and purchases budget is unique to merchandising companies.

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The Budget which is unique to merchandising companies.

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Chapter 9 Solutions