The sales budget must be prepared before any other component of the operating budget.

Name: The sales budget must be prepared before any other component of the operating budget.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The sales budget is typically the starting point for developing the operating budget since it provides a basis for estimating the level of production, inventory, and other expenses. Therefore, it is essential to prepare the sales budget before any other component of the operating budget.

The Sales Budget Must Be Prepared Before Any Other Component