Which of the following sequences is correct?
A)Sales budget - production budget - direct materials budget - budgeted income statement
B)Budgeted income statement - direct materials budget - production budget - sales budget
C)Cash receipts budget - sales budget - production budget - budgeted income statement
D)Inventory budget - production budget - sales budget - selling and administrative budget

Question

Quizplus · Accepted Answer

The correct sequence of budgets is as follows:
1. Sales budget
2. Production budget (based on the sales forecast)
3. Direct materials budget (based on the production budget)
4. Budgeted income statement (combines all budgets)

Which of the Following Sequences Is Correct