The first step in preparing the operating budget is the ________.
A)cash budget
B)capital budget
C)operating expense budget
D)sales budget

Question

Quizplus · Accepted Answer

The first step in preparing the operating budget is to forecast the expected sales for the budget period, which means creating a sales budget. This budget provides a foundation for creating the rest of the operating budget, including the operating expense budget, which outlines the anticipated expenses necessary to generate those sales. The cash budget and capital budget are usually prepared after the operating budget has been finalized.

The First Step in Preparing the Operating Budget Is the ________