1) When preparing a production budget, the desired ending finished goods inventory for the first period is:

Select one:

a.always the same as the beginning finished goods inventory for the first period.

b.not used in this budget.

c.None of the answer choices is correct.

d.the beginning finished goods inventory for the second period.

e.always less than the beginning finished goods inventory for the second period.

2) Which of the following costs would not be included in manufacturing overhead?

Select one:

a.Direct labor.

b.Indirect labor.

c.None of the above.

d.Depreciation of factory building.

e.Indirect materials.

3) If net sales is growing at a greater rate than cost of goods sold, which of the following will always be true?

Select one:

a.Net income will decrease.

b.The gross margin ratio will decrease.

c.The gross margin ratio will increase.

d.Net income will increase.

e.None of the answer choices is correct.