Which of the following statements best describes the relationship between the sales-forecasting process and the master-budgeting process?

Question

Quizplus · Accepted Answer

The sales forecast is typically completed before the master budget and has significant impact on it. This is because the sales forecast is a critical input for the master budgeting process, as it helps in determining the revenue projections and hence the budgeted income statement. The accuracy and reliability of the sales forecast greatly influences the master budget and its associated budgets such as production, inventory, and operating expenses. Therefore, the sales-forecasting process and the master-budgeting process are closely linked and interdependent.

Which of the Following Statements Best Describes the Relationship Between