The budget that describes how many units must be produced in order to meet sales needs and ending inventory requirements is the:

a. cash budget.

b. budgeted income statement.

c. direct materials purchases budget.

d. production budget.

Which of the following statements about cost-volume-profit (CVP) analysis is true?

a. CVP analysis is a powerful tool for planning and decision making.

b. CVP analysis shows how revenues, expenses, and profits behave as volume changes.

c. CVP analysis allows managers to do sensitivity analysis by examining the impact of various prices or cost levels on profit.

d. All of these choices are correct.

A costing system that first assigns costs to activities and then to cost objects is called:

a. activity-based costing.

b. job-order costing.

c. facility costing.

d. volume-based costing.