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Direct Materials Budget
This budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand by the production budget. This consists of as:
i. Direct Materials Usage Budget: This implies the estimated quantities of materials desired for budgeted production.
ii. Direct Materials Purchases Budget: that ensures about materials are in the planned materials stock levels that is after considering both usage material stock desired.
Budgetary Planning and Control - Accounting Techniques A budget is a plan of action expressed in monetary terms. Therefore it is a quantified plan of what one intends to do.
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