Which of the following budgets probably would be prepared immediately after the preparation of the production budget?
A) Cash budget
B) Capital expenditures budget
C) Selling and administrative expense budget
D) Direct materials purchases budget

Question

Quizplus · Accepted Answer

The direct materials purchases budget would likely be prepared immediately after the production budget, as it is necessary to determine how much material is needed to support the level of production expressed in the production budget. The cash budget, capital expenditures budget, and selling and administrative expense budget may be prepared at later stages in the budgeting process.

Which of the Following Budgets Probably Would Be Prepared Immediately