Which of the following budgets would probably not be prepared using information provided by the production budget?
A) Direct materials budget
B) Direct labour budget
C) Manufacturing overhead budget
D) Sales budget

Question

Quizplus · Accepted Answer

The sales budget would not be prepared using information provided by the production budget, as the sales budget provides information on forecasted sales and the production budget is used to determine how many units need to be produced to meet those sales projections. The other budgets listed (direct materials budget, direct labor budget, and manufacturing overhead budget) would all be prepared using information provided by the production budget, as they are all related to the production process.

Which of the Following Budgets Would Probably Not Be Prepared