Which of the Following Alternatives Reflect the Proper Order of Preparing

question 123

Multiple Choice

Which of the following alternatives reflect the proper order of preparing components of the master budget? 1. Financial budget
2) Operating budget
3) Capital expenditures budget

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

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Definitions:

Raw Materials Production

The process involved in generating or extracting the basic materials that are subsequently processed to become components or products.

Production Budget

An estimate of the cost to manufacture a set of products in a specified period.

Raw Materials Inventory

The value of all the materials that are yet to be used in manufacturing.

Required Production

The quantity of products that a company must manufacture in a specific period to meet customer demand and inventory policies.