The primary budget for a new venture, from which all other budgets flow, is known as the _____

Question

Quizplus · Accepted Answer

The sales budget is considered the primary budget for a new venture because it outlines the expected sales revenue, which serves as the foundation for all other financial planning and budgeting activities within the company. All other budgets, such as the production, purchasing, and labor budgets, are developed based on the sales forecast.

The Primary Budget for a New Venture, from Which All