登录之后可查看解析

Answer (D) is correct . The most significant items are those that will vary between the contingency budget and the regular budget. The company cannot increase its finished goods inventory, but it can increase its inventory of the direct materials provided by the supplier. Thus, the items most affected will be direct materials and cash. The cash budget will be affected because of the need to pay for direct materials prior to their usage.

Answer (A) is incorrect because The nature of the product prevents an increase in production volume to augment finished goods inventory.
Answer (B) is incorrect because Sales are dependent on demand, a factor not affected by the strike. Sales may decrease, however, if the company suffers a stockout. Furthermore, ending finished goods inventory cannot increase because of the nature of the product.
Answer (C) is incorrect because The nature of the product prevents an increase in production volume to augment finished goods inventory.