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

Question

Quizplus · Accepted Answer

The budgeted income statement is the final component of the operating budget because it summarizes all of the information from the sales budget, production budget, and other operating budgets, including operating expenses, inventory, purchases, and cost of goods sold. Capital expenditures are typically included in a separate capital budget.

In Preparing an Operating Budget, the Sales Budget Is Prepared