Which of the following would be prepared first when a merchandising company uses a master budget?
A) Selling and administrative expense budget
B) Budgeted income statement
C) Sales forecast
D) Inventory purchases budget

Question

Quizplus · Accepted Answer

The first step in preparing a master budget is to create a sales forecast. This forecast will then be used to create the other budgets, such as the inventory purchases budget, selling and administrative expense budget, and budgeted income statement.

Which of the Following Would Be Prepared First When a Merchandising