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Components of a Master Budget

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Identify the order in which the following budgets are prepared. Use the letter a to indicate the first budget to be prepared, b for the second, and so on.

1. Production Budget
2. Direct Labor Budget
3. Direct Materials purchases budget
4. Sales Budget
5. Budgeted balance sheet
6. Cash Budget
7. Budgeted income statement

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The sequence of budgets is below. The sequence is based on the fact that some ...

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The solution explains the order in which the components of master budget are prepared

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