The revenues budget is prepared after all other operating budgets are prepared.

Question

Quizplus · Accepted Answer

The revenues budget is actually prepared before other operating budgets because it serves as the basis for the sales forecast and production budget. The sales forecast determines the amount of revenue that will be generated, which in turn affects the production budget, as well as other budgets such as the purchasing, direct labor, and overhead budgets.

The Revenues Budget Is Prepared After All Other Operating Budgets