A master budget is a compilation of forecasts for the coming year or operating cycle made by various departments or functions within an organization. What is the most basic forecast made in a master budget?
A) Sales forecast
B) Production forecast
C) Labor forecast
D) Materials forecast

Question

Quizplus · Accepted Answer

The most basic forecast made in a master budget is the sales forecast, as it serves as the basis for all other budgets and determines the level of production, materials needed, and labor required.

A Master Budget Is a Compilation of Forecasts for the Coming