Question

Why should the timing of direct materials purchases be closely coordinated with the production budget?

Answer 1

Direct materials purchases should be in sync with production budget because, direct material should be more than what is required and always should be available for production without any stock out situation, the 1st will lead to increase in inventory carrying cost, and the later in delay of production. Thus  direct materials purchases be closely coordinated with the production budget so  that the inventory levels can be maintained within reasonable limits