For a manufacturing company, which of the following budgets does not have to be prepared before a budgeted income statement is prepared?
A) Budgeted cost of goods manufactured
B) Budgeted cost of goods sold
C) Budgeted balance sheet
D) Sales budget

Question

Quizplus · Accepted Answer

The budgeted balance sheet does not have to be prepared before a budgeted income statement is prepared. The budgeted income statement is prepared using the sales budget, budgeted cost of goods sold, and other operating expenses budget. The budgeted cost of goods sold is derived from the budgeted cost of goods manufactured. Once the budgeted income statement is prepared, the budgeted balance sheet can be prepared based on the projected financial position of the company.

For a Manufacturing Company, Which of the Following Budgets Does