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Problem 1: Non-manufacturing businesses normally do not have direct materials purchases budgets, direct labor cost budgets, or factory overhead cost budgets. A primary budget in non-manufacturing businesses is the labor, or staffing, budget; this budget, which is highly flexible to service demands, is used to manage staffing levels.
A. True B. False: Nonmanufacturing businesses normally do have direct materials purchases budgets, direct labor cost budgets, or factory overhead cost budgets. C. False: A primary budget in non-manufacturing businesses is the direct materials purchases budget D. False: a staffing budget is strictly fixed and unrelated to service demands to manage staffing levels E. B, C, and D
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