In the budgeting process, which budget is typically prepared first?
A) Cash budget
B) Summary budget
C) Sales budget
D) Production budget

Question

Quizplus · Accepted Answer

The sales budget is typically prepared first in the budgeting process, as it is the budget that drives all other budgets. The sales budget is used to determine the production budget, which in turn is used to create the cash budget and the other supporting budgets.

In the Budgeting Process, Which Budget Is Typically Prepared First