The first and last steps respectively in the developing a master budget are:
A) forecasting sales and estimating expenses.
B) preparation of the sales budget and preparation of the capital expenditure budget.
C) identifying goals and preparation of a set of budgeted financial statements.
D) identifying goals and preparation of the cash budget.

Question

Quizplus · Accepted Answer

The first step in developing a master budget is to identify goals, which includes setting objectives and targets. The last step is the preparation of a set of budgeted financial statements that integrate all the individual budgets into a single comprehensive plan. While forecasting sales, estimating expenses, preparation of the sales budget, preparation of the capital expenditure budget, and preparation of the cash budget are all important steps in the budgeting process, they fall somewhere in between the beginning and end phases.

The First and Last Steps Respectively in the Developing a Master