Which of the following budgets needs to be prepared prior to preparing an inventory purchases budget?
A) Selling and administrative expense budget
B) Sales budget
C) Cash budget
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

The sales budget needs to be prepared before preparing an inventory purchases budget because the amount of inventory purchases needed will depend on the expected sales for the period. The selling and administrative expense budget and cash budget are also important, but they can be prepared after the inventory purchases budget has been completed. Therefore, option D is not correct.

Which of the Following Budgets Needs to Be Prepared Prior