In developing a master budget for a manufacturing company, which one of the following items should be done first?
A) Development of a sales budget.
B) Development of the capital budget.
C) Determination of manufacturing capacity.
D) Determination of the advertising budget.

Question

Quizplus · Accepted Answer

The sales budget is typically developed first because it provides the basis for other components of the master budget, such as production, purchasing, and expense budgets.

In Developing a Master Budget for a Manufacturing Company, Which