Question

Which of the following is the sequence in which the budgets of a firm are prepared?

A. Sales budget, production budget, and budgeted income statement
b. Budgeted income statement, overhead budget, and sales budget
c. Ending finished goods inventory budget, direct labor budget, and production budget
d. Marketing expense budget, research and development expense budget, and sales budget

Answer 1

The correct sequence in which the budgets of a firm are prepared is: sales budget, production budget, and budgeted income statement.

Step-by-step explanation:

The correct sequence in which the budgets of a firm are prepared is:

1. Sales budget
2. Production budget
3. Budgeted income statement

This sequence ensures that the firm plans for its sales, determines the amount of production required to meet those sales, and then estimates the income it expects to generate based on its production and sales figures.