Virtually every phase of the master budget for a manufacturer is dependent on:
A) the sales forecast.
B) the capital expenditure forecast.
C) the wastage rate.
D) the production forecast.

Question

Quizplus · Accepted Answer

The sales forecast is the starting point for almost every aspect of the master budget for a manufacturer, including production, purchasing, labor, and overhead costs. Without a reliable sales forecast, it is difficult to plan other aspects of the budget accurately. Therefore, choice A is the best option.

Virtually Every Phase of the Master Budget for a Manufacturer