The starting point for preparing the master budget is the:
A)inventory budget.
B)sales budget.
C)production budget.
D)budgeted balance sheet.

Question

Quizplus · Accepted Answer

The sales budget is the starting point for preparing the master budget as it provides the basis for making projections in other budgets such as production, purchases, and cash budgets. Without knowing how much the company expects to sell, it is impossible to plan the rest of the budget effectively.

The Starting Point for Preparing the Master Budget Is The