Which of the following budgets is prepared soon after the preparation of sales budget in a master budget?
A)Cost of goods sold budget
B)Production budget
C)Cash budget
D)Selling and administrative expenses budget

Question

Quizplus · Accepted Answer

The production budget is prepared soon after the sales budget as it outlines the production needs required to meet the forecasted sales demand. The cost of goods sold budget and selling and administrative expenses budget can be prepared after the production budget, and the cash budget is typically prepared last as it takes into account all other budgets and cash inflows and outflows.

Which of the Following Budgets Is Prepared Soon After the Preparation