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 typically the final component of an operating budget as it summarizes the anticipated revenues, expenses, and profits for the upcoming period based on the information gathered in the preceding budgets, such as the sales, production, labor, and overhead budgets. Inventory, purchases and cost of sales, and electricity and gas are typically budgeted earlier in the process, while capital expenditures may be included in the capital budget rather than the operating budget.

In Preparing an Operating Budget,the Sales Budget Is Prepared First