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

Question

Quizplus · Accepted Answer

The correct order for preparing the operating budget typically starts with the revenues budget, followed by the production budget, then the direct manufacturing labor costs budget, and finally the cost of goods sold budget. This sequence aligns with the logical flow of planning, from estimating sales to determining the production needs and associated costs to meet those sales.

The Order to Follow When Preparing the Operating Budget Is