In preparing an operating budget, the sales budget is prepared first. Which of the following is prepared next?

Question

Quizplus · Accepted Answer

Once the sales budget is prepared, the next logical step is to estimate the inventory, purchases, and cost of goods sold needed to support those sales. This will then lead to the preparation of the budgeted income statement, followed by the operating expenses and capital expenditures budgets.

In Preparing an Operating Budget, the Sales Budget Is Prepared