Final answer:
The statement that a company prepares a budget for nonmanufacturing costs after all operating budgets is FALSE. Budgets for nonmanufacturing costs are an integral part of the master budget and are prepared concurrently or subsequently with operating budgets, not necessarily after them.
Step-by-step explanation:
TRUE or FALSE: A company usually prepares a budget for nonmanufacturing costs after preparing all operating budgets.
The statement is FALSE. When companies prepare their master budgets, they typically start with the operating budgets, which include sales, production, and associated costs like materials, labor, and overhead. However, the budget process does not end with manufacturing costs. Concurrently or subsequently, companies prepare budgets for nonmanufacturing costs as well, which include selling, administrative, and other expenses. These are all integral parts of the master budget.
So, while manufacturing budgets are critical, they are not typically prepared in isolation or completed prior to the preparation of nonmanufacturing cost budgets. Rather, the budgeting process is more integrated. Nonmanufacturing costs are vital for forecasting the overall financial health of the company and therefore are prepared in conjunction with the various operating budgets.