If the chief accountant of a firm has to prepare an operating budget for the coming year,the first budget to be prepared is the
A)sales budget.
B)cash budget.
C)purchases budget.
D)capital budget.

Question

Quizplus · Accepted Answer

The sales budget is the starting point in the budgeting process because it establishes the level of activity for all other budgets. The sales forecast determines the quantities of each product that the company plans to sell, which in turn affects production, purchasing, labor, and other budgets.

If the Chief Accountant of a Firm Has to Prepare