When looking at the main difference between the budget preparation process of a manufacturing company and that ofa service company,a.service company budgets focus more on the sales budget than do manufacturing companies.O b. the budget process contains the same level of complexity in both types of companies.c. manufacturing budgets focus more on the long-range planning components of the process than do servicecompanies.O d. the budget process is more important to a manufacturing company because of the higher level of capitalinvestment involved.

Answer is option d) The budget process is more important to a mnufacturing company because of the…

Answered: When looking at the main difference…

When looking at the main difference between the budget preparation process of a manufacturing company and that of a service company,

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 18MC: What is the main difference between static and flexible budgets? The fixed manufacturing overhead is...

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Given the following information from Power Enterprises direct materials budget, how much direct materials needs to be purchased?
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What operating budget exists for manufacturing but not for a retail company?
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