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Which of the following alternatives reflects the proper order of preparing components of the master budget? 1. Production budget 2. Sales budget 3. Direct materials budget a. 2, 3, 1 b. 1, 3, 2 c. 2, 1, 3 d. 3, 1,2 Bright Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of 2015 is as follows: Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Bright Lamp expects to sell the lamps for $25 each. January 2016 sales are projected at 16,000 lamps. How many lamps should be produced in November? a. 11,000 lamps b. 10,500 lamps c. 14,000 lamps d. 13,750 lamps Which of the following is a potential disadvantage of participative budgeting? a. Managers may build slack into the budget b. Managers are more likely to be motivated by budgets they helped to create c. Managers should have more detailed knowledge for creating realistic budgets d. None of the above