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 begins with the sales budget because all other budgets are dependent on the sales budget. The sales budget outlines the projected sales revenue for the budget period and helps determine the volume of production, expected cash inflows, and operating expenses. Once the sales budget is established, the production budget, operating budget, and cash budget can be developed in relation to it.

The Master Budget Process Usually Begins with the