The correct sequence for the following components in the operating budget is:
I. Sales Forecast
II. Production Budget
III. Revenue Budget
IV. Budgeted Cost of Sales
A) I, II, III, IV
B) III, I, IV, II
C) I, III, II, IV
D) IV, I, III, II

Question

Quizplus · Accepted Answer

The correct sequence is to start with the Sales Forecast, which informs the Revenue Budget. Then, the Production Budget is prepared based on the sales needs, followed by the Budgeted Cost of Sales.

The Correct Sequence for the Following Components in the Operating