In which order are budgets prepared?

Question

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The sales budget is prepared first to forecast the level of sales expected in the upcoming period. Based on this, the production budget is then prepared to determine the quantity of goods that need to be produced to meet the sales forecast. Finally, the direct materials purchases budget is prepared to determine the quantity and cost of materials needed for production. The direct labour budget and cost of goods sold budget are typically prepared later in the budgeting process. The cash budget is also a separate budget and is not necessarily prepared in a specific order with the other budgets.

In Which Order Are Budgets Prepared