Which of the following orders is most effective for constructing an operating budget? A.1) Production budget...

Which of the following orders is most effective for constructing an operating budget?

A.1) Production budget - 2) Personnel budget - 3) Sales Budget

B.1) Personnel budget - 2) Production budget - 3) Sales Budget

C.1) Sales Budget - 2) Personnel budget - 3) Production budget

D.1) Sales Budget - 2) Production budget - 3) Personnel budget

Solutions

Expert Solution

Answer -

Option (D) - 1.Sales budget. 2.Production budget.3.personnel budget is correct.

Explanation -

For constructing an oprating budget it is important to make first sales budget in which proper allocation of resources to achieve forcasted sales is determined.It also contains plan for maximum utilisation of resources.

After sales budget it is required to prepare production budget to satisfy quantity of estimated sales of production units.It contains how many units of production to produce and estimating the proper cost of manufacturing a product.

After production budget it is required to prepare personnel budget which focuses on controlling the cost on employment like estimation and control of salaries and wages expenditure.It also facilities to ensure having sufficient income to pay employees on regular basis.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

describe three types of budget classification and state which is most effective when presenting a budget?

1. Which of the following is the most effective goal? a. Add a new product to...

1. Which of the following is the most effective goal? a. Add a new product to the company's product line. b. Improve market share by 3 percent. c. Retain 75 percent of employees. d. Become the market share leader by 2020. 2. What do we call the number of employees that a manager supervises? a. centralized organization b. line organization c. organization chart d. span of control 3. ..........theory proposes that perceptions of fairness directly affect worker motivation; SelectMaslow's hierarchy...

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

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

1.Which of the following budgets comes after the production budget but before the cash budget?. Single...

1.Which of the following budgets comes after the production budget but before the cash budget?. Single choice. A. Sales budget B. Material purchases budget C. Budgeted balance sheet D. Budgeted income statement 2.Which of the following is NOT usually a way to estimate future sales?. Single choice. A. Trends in the company’s sales data B. Estimates from the company’s salespersons C. Sales are estimated based on expected costs D. Mathematical models adjusted by an experienced manager using professional judgment 3.A...

1. In macroeconomics, which of the following topics would most likely be studied? a. Bob's budget...

1. In macroeconomics, which of the following topics would most likely be studied? a. Bob's budget b. Nike's costs of production c. The growth rate of the oil industry d. Unemployment in Mexico 2. The GDP deflator: a. measures price changes for everything produced in the country. b. may include goods produced abroad. c. is computed using the quantities that are consumed in the economy each year. d. is the same as PPI. 3. The labor supply curve: a. is...

Which of the following steps would be necessary to determine the most effective antibiotic for a...

Which of the following steps would be necessary to determine the most effective antibiotic for a bacterial infection using the Disk Diffusion Assay? Select three necessary steps and three unnecessary or incorrect steps, and explain why it is or is not necessary/correct. Collect a sample of bacteria from the infected patient. Collect samples of bacteria from the bathroom taps in the patient’s room. Collect samples of bacteria from other patients who seem to have the same infection. Soak disks in...

Garry's Corporation's most recent production budget indicates the following required production: October November December Required Production...

Garry's Corporation's most recent production budget indicates the following required production: October November December Required Production (units) 210,000 175,000 110,000 Each unit of a finished product requires 5 pounds of raw materials. The company maintains raw materials inventory equal to 25% of the next month's expected production needs. How many pounds of raw material should Garry plan on purchasing for the month of November? A. 893,500 B. 793,750 C. 1,006,250 D. 1,012,500 I know the answer is B, but I'm...

[Auditing] 3. Which of the following controls would be most effective in detecting a misstatement of...

[Auditing] 3. Which of the following controls would be most effective in detecting a misstatement of the completeness assertion with respect to accounts payable? a. A list of outstanding checks written to vendors is generated during the preparation of the monthly bank reconciliation. b. Purchase orders must be accompanied by properly approved purchase requisitions before they are submitted to vendors. c. The AIS purchases and disbursements application will not prepare a check to a supplier without a valid ID number...

5) Garry Corporation's most recent production budget indicates the following required production: October 210,000 November 175.000...

Garry's Corporation's most recent production budget indicates the following required production:OctoberNovemberDecemberRequired Production (units)210,000175,000110,000Each unit of a finished product requires 5 pounds of raw materials. The company maintains raw materials inventory equal to 25% of the next month's expected production needs. How many pounds of raw material should Garry plan on purchasing for the month of November?39) Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4...

Which of the following sequences is correct? Select one a. Cash receipts budget-sales budget-production budget-budgeted income...

Which of the following sequences is correct? Select one a. Cash receipts budget-sales budget-production budget-budgeted income statement b. Sales budget-production budget-direct materials budget-budgeted income statement c Budgeted income statement-direct materials budget-production budget-sales budget O d Inventory budget-production budget-sales budget-selling and administrative budger

Subjects