Q1. The amount of materials to be purchased during the budget period is equal to budgeted:

A. total production ended plus units in the beginning materials inventory minus the units in the ending materials inventory

B. total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory

C. units to be produced plus units in the beginning materials inventory minus the units in the ending materials inventory

D. units to be produced plus units in the ending materials inventory minus the units in the beginning materials inventory

Q2. How will increases in the following items effect return on investment (ROI)

1. Expenses will decrease and inventory will decrease

2. Expenses will decrease and inventory will increase

3. Expenses will increase and inventory will decrease

4. Expenses will increase and inventory will increase

A. 1

B. 2

C. 3

D. 4