A. The capital budget is the budget in which all capital (property, plant and equipment) expenditures are planned. This budget is not directly connected to all of the current period budgets and it is often prepared years in advance so that the company is able to obtain the necessary financing or accumulate the necessary cash to carry out its capital expansion plans.

B. The production plan can not be calculated until the sales level is estimated.

C. The sales forecast is usually the first forecast to be prepared in the budgeting process. After the sales level has been determined, the production budget and expense budget are prepared. Only after all of these other budgets are done can profits be estimated.

D. Cost and expense budgets can not be calculated until the sales level is estimated.