From the list below, which budget should be prepared before the others?
I. Cash budget
II. Manufacturing overhead budget
III. Cost of goods manufactured budget
IV. Production budget
A) I
B) II
C) III
D) IV

Question

Quizplus · Accepted Answer

The production budget should be prepared before the other budgets as it is a fundamental budget that determines the quantity of goods that will be produced during the budget period. The manufacturing overhead budget, cost of goods manufactured budget, and cash budget depend on the production budget. Without the production budget, other budgets can't be prepared accurately.

From the List Below, Which Budget Should Be Prepared Before