Typically the first step in the budget process is to compile the
A) expenditure budget.
B) sales budget.
C) capital expenditure budget.
D) pro forma income statement.

Question

Quizplus · Accepted Answer

The first step in the budget process is usually to create a sales budget, as this determines the amount of revenue that the company expects to generate during the budget period. The sales forecast is then used as a basis for creating the other budgets, such as the expenditure budget, capital expenditure budget, and pro forma income statement. However, the sales budget is the starting point for the entire process.

Typically the First Step in the Budget Process Is to Compile