Asked by
Wendy Licona
on Oct 23, 2024
Verified
The usual order of steps in preparing a budget is
A) production budget, sales budget, budgeted income statement.
B) sales budget, production budget, budgeted income statement.
C) budgeted income statement, production budget, sales budget.
D) budgeted income statement, sales budget, production budget.
Sales Budget
A financial plan detailing the expected revenues from sales over a specific period, used for setting targets and measuring performance.
Budgeted Income
The forecasted profit or loss for a given period, based on expected revenues and expenses.
Production Budget
An estimate of the total output, expressed in terms of units, that a company plans to produce in a specified period.
- Understand the theory and practical use of sales forecasting in the budgeting procedure.
- Evaluate the projected prime costs and establish the necessary production for manufacturing activities.
Verified Answer
JH
Learning Objectives
- Understand the theory and practical use of sales forecasting in the budgeting procedure.
- Evaluate the projected prime costs and establish the necessary production for manufacturing activities.