The Order to Follow When Preparing the Operating Budget Is

question 154

Multiple Choice

The order to follow when preparing the operating budget is ________.

• A) revenues budget, production budget, direct manufacturing labor costs budget , and cost of goods sold
• B) revenues costs of goods sold budget, production budget, and cash budget
• C) revenues budget, manufacturing overhead costs budget, and production budget
• D) cash expenditures budget, revenues budget, and production budget

---

Definitions:

FIFO Method

"First-In, First-Out," an inventory valuation method that assumes the first items placed into inventory are the first ones sold.

Current Period

The specific duration of time, typically the present month, quarter, or year, for which financial activities are being recorded and analyzed.

Process Cost Summary

A report that aggregates the costs associated with a process or a series of processes, showing material, labor, and overhead for a period.