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Which of the following budgets needs to be established first in the budgeting process? a. The...

  1. Which of the following budgets needs to be established first in the budgeting process?

    a.

    The cash budget
    b.

    The production budget
    c.

    The sales budget
    d.

    The budgeted income statement
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Answer #1
  • cash Budget is prepared after the operating budgets and capital expenditure budgets.
  • Production budget is prepared after the sales budget and expected change in finished goods inventory.
  • Budgeted income statement prepared after the sales , purchases, production and administration expenses.
  • Sales budget needs to be established first in the budgeting process as sales budget estimate the sales in units as well as estimate earnings from these sales.

so, option c. is correct.

sales budget needs to be established first in the budgeting process.

Hope it helps ?

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