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Which of the following is TRUE when building a Direct ( i . e . , raw ) Materials budget: None of these are true
Which of the following is TRUE when building a Direct ie "raw" Materials budget:
None of these are true statements.
The required purchases of raw materials in units equals raw materials needed to meet the production schedule plus desired ending inventory of raw materials minus the beginning inventory of raw materials.
Beginning inventory of raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased.
The timing of cash disbursements for raw materials impacts raw materials purchases.
Production requirements are ignored.
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