Which of the following is the correct order for the preparation of the listed budgets?

Question

Quizplus · Accepted Answer

The sales budget should be prepared first as it will drive the production budget and, in turn, the direct material purchases budget. Once these operational budgets are completed, the cash budget can be prepared based on the projected cash inflows and outflows. The budgeted income statement can then be prepared using the operational and financial information gathered from the other budgets. The capital acquisitions budget and direct labor budget are separate budgets that may be prepared at different points in the budgeting process.

Which of the Following Is the Correct Order for the Preparation