Development of the operating budget begins with the
A)Cash budget.
B)Sales budget.
C)Overhead budget.
D)Pro-forma budget.

Question

Quizplus · Accepted Answer

The development of the operating budget typically starts with the sales budget, as it is the foundation for projecting revenues and determining the resources that will be needed to support those revenues in the form of expenses. From there, other budgets such as the cash budget, overhead budget, and pro-forma budget can be created.

Development of the Operating Budget Begins with the