In preparing an operating budget, the sales budget is prepared first. Which of the following is prepared next?
A)Budgeted income statement
B)Capital expenditures
C)Inventory, purchases and cost of sales
D)Electricity and gas

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of sales budget is prepared next after the sales budget, as it is dependent on the sales projections to determine the necessary inventory levels and purchasing needs.

In Preparing an Operating Budget, the Sales Budget Is Prepared