In developing a budget for a manufacturing firm with a functional organization, which of the following must be prepared first?
A) A production budget
B) A finished goods inventory budget
C) A sales budget
D) A materials purchases budget

Question

Quizplus · Accepted Answer

The sales budget is the starting point in the budgeting process for a manufacturing firm because it estimates the number of units expected to be sold, which then determines the production, inventory, and materials purchase budgets.

In Developing a Budget for a Manufacturing Firm with a Functional