In which order are the following developed? First to last:
A = Production budget
B = Direct materials costs budget
C = Budgeted income statement
D = Revenues budget
A) ABDC
B) DABC
C) DCAB
D) CABD

Question

Quizplus · Accepted Answer

The correct order is DABC: First, the revenues budget is developed to estimate the total sales. Next, the production budget is prepared based on the sales forecast. The direct materials costs budget is then developed based on the production budget. Finally, the budgeted income statement is prepared, incorporating all the previous budgets.

In Which Order Are the Following Developed? First to Last