The budget that should be prepared before the others listed is:
A) manufacturing overhead budget.
B) cost of goods manufactured budget.
C) cash budget.
D) production budget.

Question

Quizplus · Accepted Answer

The production budget is the first step in the budgeting process because it determines the number of units that need to be produced to meet sales demands and inventory requirements, which then informs the other budgets such as the manufacturing overhead budget, cost of goods manufactured budget, and cash budget.

The Budget That Should Be Prepared Before the Others Listed