The budgeting process is most strongly influenced by ________.
A) the capital budget
B) the budgeted statement of cash flows
C) the sales forecast
D) the production budget

Question

Quizplus · Accepted Answer

The budgeting process is primarily influenced by the sales forecast, which provides the basis for estimating future revenues and expenses. The other options listed (capital budget, budgeted statement of cash flows, production budget) are important components of the budgeting process, but they are secondary to the initial sales forecast in terms of influence.

The Budgeting Process Is Most Strongly Influenced by ________