Asked by Daniel Sanchez on May 10, 2024
Verified
After the sales budget is prepared, the production budget is normally prepared next.
Sales Budget
One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.
Production Budget
A budget of estimated units to be manufactured to meet budgeted sales and desired inventory levels.
- Absorb the methodology of sequencing the preparation of distinct component budgets.
Verified Answer
JV
Jennifer VensonMay 11, 2024
Final Answer :
True
Explanation :
The production budget is usually prepared after the sales budget because it takes into account the expected demand for goods and services based on the forecasted sales figures.
Learning Objectives
- Absorb the methodology of sequencing the preparation of distinct component budgets.
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