Budgets usually start with the development of the sales budget, and it is the most difficult budget to prepare. Production volume and finished goods inventory budgets are the next budgets to be prepared, and their development is based on the assumptions made in preparing the sales budget. When the business is seasonal in nature it is even more difficult to predict sales volume and subsequent budgets. Thus, for any type of business including seasonal it is critical to coordinate production volume, finished goods inventory, and sales volume first of all.
The sales budget is usually the first thing to determine in the budgeting process of any type of business including a seasonal business. See the correct answer for a complete explanation.
Direct labor hours, work-in-process inventory are elements within the production budget. See the correct answer for a complete explanation.
The sales budget is usually the first thing to determine in the budgeting process of any type of business including a seasonal business. See the correct answer for a complete explanation.
|
