Which of the Following Alternatives Reflects the Proper Order of Preparing

question 18

Multiple Choice

Which of the following alternatives reflects the proper order of preparing components of the master budget? 1. Production budget
2) Sales budget
3) Direct materials budget

• A)2, 3, 1
• B)1, 3, 2
• C)3, 1, 2
• D)2, 1, 3

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Definitions:

Profits and Losses

Financial gains achieved when revenue exceeds expenses, or deficits incurred when expenses outstrip revenue.

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.

Coincidence of Wants

A situation in barter economies where two parties each possess an item the other wants, allowing for a direct exchange without the need for a medium of exchange like money.

Barter

The direct exchange of one good or service for another good or service.