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The order to follow when preparing the operating budget is​ ________. A. cash expenditures​ budget, revenues​ budget, and production budget B. revenues costs of goods sold​ budget, production​ budget, and cash budget C. revenues​ budget, production​ budget, direct manufacturing labor costs budget​ , and cost of goods sold D. revenues​ budget, manufacturing overhead costs​ budget, and production budget

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sandlee09

Answer:

A)

Explanation:

The order to follow when preparing the operating budget is revenues budget, production budget, and direct manufacturing labor costs budget. This is done in this order because this is the order of importance and the previous budget may affect the values or decisions made with the next budget in the process of creating them.

A precise prediction of what an organization or a company anticipates from its remuneration and expenditures over a provided period of duration is called an operating budget.

The order of operating budget is:

Option A. Cash expenditures​ allocation, remunerations​ budget, and production allotment

The process can be explained as:

  • The first step in preparing a budget is budget preparation of sales and monetary funds.

  • The preparation or estimation of revenue gained from the sales is the second step of preparation. The final step includes the budget needed for preparing the services or goods.

Therefore, option A is correct.

To learn more about the operating budget follow the link:

https://brainly.com/question/989316

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