1. The purpose of preparing a direct materials budget is to . a. allocate the cost of raw materials to production departments. b. estimate the manufacturing overhead. c. estimate the quantity of raw materials to be purchased. d. estimate the unit cost of direct materials to be purchased.2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the . a. beginning balance of accounts payable. b. desired ending raw materials inventory for the last period. c. total merchandise purchased during the year. d. value of raw material used during the year.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan