In Preparing an Operating Budget, the Sales Budget Is Prepared

question 45

Multiple Choice

In preparing an operating budget, the sales budget is prepared first. Which of the following is prepared next?

• A) Capital expenditures
• B) Budgeted income statement
• C) Operating expenses
• D) Inventory, purchases and cost of goods sold

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Definitions:

Lanugo

Fine, soft, unpigmented fetal hair.

Colostrum

Thin, white fluid; the first milk secreted by the breast at the termination of pregnancy; contains less fat and lactose than the milk secreted later.

Fetal Hair

Also known as lanugo, it is the fine, soft hair that covers the body of a fetus as a form of insulation.

Primary Hair

The main or guard hairs that form the outer coat of an animal's fur, providing protection against the elements.