In addition to the three basic financial statements, which of the following is also a required financial statement? A) the Statement of Cash Flows B) the "Cash Budget" C) the "Cash Reconciliation" D) the Statement of Cash Inflows and Outflows 83. The direct materials quantity standard should A) exclude quality considerations. B) always be expressed as an ideal standard. C) allow for normal spoilage. D) exclude unavoidable waste. 84. In a production budget, total required units are the budgeted sales units plus A) desired ending finished goods units minus beginning finished goods units. B) desired ending finished goods units. C) beginning finished goods units. D) desired ending finished goods units plus beginning finished goods units. 85. The direct materials budget details 1. the quantity of direct materials to be purchased. 2. the cost of direct materials to be purchased. A) neither 1 nor 2 B) 1 C) both 1 and 2 D) 2 86. In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to A) desired ending direct materials less beginning direct materials. B) beginning direct materials less desired ending direct materials. C) desired ending direct materials. D) beginning direct materials. 87. The formula for determining budgeted merchandise purchases is budgeted A) cost of goods sold + desired ending inventory - beginning inventory. B) production + desired ending inventory-beginning inventory. C) sales + beginning inventory-desired ending inventory. D) cost of goods sold + beginning inventory - desired ending inventory. Version 2 Page 16