The first step in creating the master budget is the creation of the
A) production budget.
B) direct labor budget.
C) cash budget.
D) sales budget.
E) budgeted income statement.

Question

Quizplus · Accepted Answer

The first step in creating the master budget is the creation of the sales budget, as it provides the basis for all other budgets in the master budget, including production, direct labor, and cash budgets. The budgeted income statement is created after all the other budgets are developed, so it is not the first step in the process.

The First Step in Creating the Master Budget Is the Creation