The usual starting point for preparing a master budget is forecasting or estimating:
A) Expenditures.
B) Sales.
C) Production.
D) Income.
E) Cash payments.

Question

Quizplus · Accepted Answer

Forecasting or estimating sales is the usual starting point for preparing a master budget as it directly impacts all other components of the budget such as production, expenses, and profits. Knowing expected sales allows a company to plan production, procurement, and other activities accordingly.

The Usual Starting Point for Preparing a Master Budget Is