Manufacturing and Budgets

Match the following

• indirect labour cost

• Material used to make the final product

• direct labour cost

• Wages of office cleaner

• administration cost

• Wages paid to production workers

• direct material costi

• Wages paid to the factory cleaner

• selling and distribution costs

• Bad debts

Depreciation of factory equipment ?

• direct labour cost

• direct material costs

• factory overhead costs

• administration costs

• selling and distribution costs

Wages paid to the workers manufacturing uniforms ?

• direct labour cost

• direct material costs

• factory overhead costs

• administration costs

• selling and distribution costs

Rent paid for the office building ?

• direct labour cost

• direct material costs

• factory overhead costs

• administration costs

• selling and distribution costs

Carriage on purchases of raw materials ?

• direct labour cost

• direct material costs

• factory overhead costs

• administration costs

• selling and distribution costs

Match the following

• Cash budget

• Depreciation is not recorded in the cash budget.

• Projected Income Statement

• A statement reflecting an estimated figure for future income and expenses

• Non-cash item

• A future forecast of cash receipts and cash payments

A budget prepared from scratch that is not based on the previous figures -

• Zero-based budget
• Capital budget

A budget prepared for an immediate period of time e.g. 12 months ?

• Medium-term budget

• Short-term budget

Flour ,yeast and water are considered to be direct materials in Bryans Bakery

• TRUE

• FALSE

The person responsible for keeping the kitchen clean and all the equipment clean in the bakery will be direct labour ?

• true

• false