The materials purchase budget:

Question

Quizplus · Accepted Answer

The materials purchase budget must provide for desired ending inventory as well as for production, ensuring that there is enough inventory on hand to support production needs. A is incorrect because the sales budget is typically the first step in the budget process. C is incorrect because a schedule of cash collections would typically be part of the cash budget. D is incorrect because the materials purchase budget would typically be completed before the cash budget.

The Materials Purchase Budget