The order to follow when preparing the operating budget is:
A)revenues budget,production budget,and direct manufacturing labour costs budget.
B)revenues budget,manufacturing overhead costs budget,and production budget.
C)cash expenditures budget,revenues budget,and production budget.
D)costs of goods sold budget,production budget,and cash budget.

Question

Quizplus · Accepted Answer

The correct order for preparing the operating budget typically starts with the revenues budget, as it outlines the expected sales and revenue. This is followed by the production budget, which is determined based on the sales forecast from the revenues budget and includes the number of units that need to be produced. Finally, the direct manufacturing labor costs budget is prepared, which is dependent on the production budget as it outlines the labor costs involved in producing the forecasted number of units.

The Order to Follow When Preparing the Operating Budget Is