The starting point in the budgeting process is the preparation of the:
A) budgeted income statement.
B) budgeted cash flow statement.
C) sales budget.
D) cash budget.

Question

Quizplus · Accepted Answer

The sales budget is the starting point in the budgeting process as it outlines the expected sales for the coming period, which impacts all other budgets (such as production, expenses, and cash flow). Without a sales budget, it is not possible to accurately budget for the other aspects of the business. Therefore, the preparation of the sales budget should be the first step in the budgeting process.

The Starting Point in the Budgeting Process Is the Preparation