Which of the Following Statements Is True

question 166

Multiple Choice

Which of the following statements is true?

• A) The production budget is the first budget to be prepared in the master budget.
• B) The cash budget is prepared before the direct materials purchases budget.
• C) The budgeted balance sheet is prepared after the cash budget.
• D) Service firms need not prepare a master budget.
• E) The cost of goods sold budget is prepared before the direct labor and overhead budgets.