Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The production budget is the first budget to be prepared in the master budget.
B) The cash budget is prepared before the direct materials purchases budget.
C) The budgeted balance sheet is prepared after the cash budget.
D) Service firms need not prepare a master budget.
E) The cost of goods sold budget is prepared before the direct labor and overhead budgets.