Budgets are prepared in which of the following orders?

Question

Quizplus · Accepted Answer

The correct order in which budgets are prepared is sales budget, production budget, and then the direct materials purchases budget. This is because the sales budget provides the anticipated level of sales, which is used to prepare the production budget. The production budget then provides information on the materials and labor required, which is used to prepare the direct materials purchases budget. Option D represents the correct order, as it follows this logical sequence.

Budgets Are Prepared in Which of the Following Orders