The budgeted "Cash payments for purchases" must be completed before the "Inventory, Purchases and Cost of goods sold budget" can be prepared.

Question

Quizplus · Accepted Answer

The "Inventory, Purchases and Cost of Goods Sold Budget" is typically prepared before the "Cash Payments for Purchases" budget because it determines the amount of inventory needed, which then informs how much cash will be needed for purchases.

The Budgeted "Cash Payments for Purchases" Must Be Completed Before