Which of the following budgets is prepared before the preparation of production budget?
A)Sales budget
B)Cash budget
C)Direct labor budget
D)Capital expenditure budget

Question

Quizplus · Accepted Answer

The sales budget is prepared before the production budget because it is the estimate of the expected sales for a particular period. Based on the sales budget, the production budget is prepared to meet the demand. The cash budget, direct labor budget, and capital expenditure budget are prepared after the production budget as they are based on the production plan.

Which of the Following Budgets Is Prepared Before the Preparation