Questions: Quiz 7 Started: Nov 8 at 12:35pm Quiz Instructions Complete a timed multiple-choice quiz (10 questions, one point per question). The time limit for is 45 minutes. Question 8 1 pts For a manufacturing company, which of the following represents the correct order in for the budgets to be prepared? Sales budget, cash budget, direct materials budget, direct labor budget Production budget, sales budget, direct materials budget, direct labor budget Sales budget, cash budget, production budget, direct materials budget Selling and administrative expense budget, cash budget, budgeted income statement, budgeted balance sheet Previous Next No new data to save. Last checked at 12:50pm Submit

The answer is: Sales budget, cash budget, production budget, direct materials budget

This option is incorrect because the direct materials budget and direct labor budget should follow the production budget, not the cash budget.

This option is incorrect because the sales budget should be prepared before the production budget. The sales budget is the starting point for the budgeting process as it determines the expected sales volume, which in turn influences production needs.

This option is correct. The sales budget is prepared first to estimate the expected sales, which informs the production budget. The production budget is then used to determine the direct materials budget. The cash budget is typically prepared after the sales budget to ensure that the company has sufficient cash flow to support its operations.

This option is incorrect because it does not follow the logical sequence of preparing operational budgets like the sales and production budgets before financial statements.