Which of the following is not true?
A) The sales forecast is done before the sales budget.
B) The master budget is the comprehensive plan for the organization as a whole.
C) The production budget is prepared in units and dollars.
D) One approach to forecasting sales is the bottom-up approach.
E) In creating the sales forecast, outside factors such as the state of the economy, should be considered.

Question

Quizplus · Accepted Answer

The production budget is typically prepared in either units or dollars but not both. It is important to determine whether the production budget is in units or dollars as it affects how the budget is created and used in other budgets, such as the direct materials budget and the direct labor budget.

Which of the Following Is Not True