The starting point in preparing a comprehensive budget for a manufacturing company limited by its ability to produce and not by its ability to sell is

Question

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The starting point in preparing a budget for a manufacturing company with limited production capacity should be an estimate of productive capacity. This will help determine how much the company can produce and therefore, how much revenue can be generated. Without knowing the productive capacity, it would be difficult to accurately forecast sales, estimate cash receipts and disbursements, or project fixed asset acquisitions.

The Starting Point in Preparing a Comprehensive Budget for a Manufacturing