In preparing the operating budget, the first step is preparing the

Question

Quizplus · Accepted Answer

The first step in preparing the operating budget is to prepare the sales budget. This budget estimates the expected sales revenue for the budget period, which then drives the rest of the budgeting process. Without a sales budget, it would be difficult to estimate the expected level of production, purchases, and operating expenses. Therefore, the sales budget is considered the starting point for the operating budget.

In Preparing the Operating Budget, the First Step Is Preparing