The master budget process usually begins with the
A)Cash budget.
B)Operating budget.
C)Production budget.
D)Sales budget.

Question

Quizplus · Accepted Answer

The master budget process usually starts with the sales budget because all other budgets such as production, operating, and cash budgets are based on the sales forecast. By determining the expected sales revenue, the company can decide on the production and operating expenses needed to achieve the desired level of production and sales. Then, the cash budget can be developed based on the projected inflows and outflows of cash resulting from the sales and expenses budgets.

The Master Budget Process Usually Begins with the