Virtually every phase of the master budget for a manufacturer is dependent on:

Question

Quizplus · Accepted Answer

The sales forecast is the foundation of the master budget for a manufacturer. It drives the production forecast, which in turn influences the budgeted expenses for direct materials, direct labor, and manufacturing overhead. The cash forecast and capital expenditure forecast are also important components of the budget, but they are not as directly dependent on the sales forecast as the production forecast and budgeted expenses.

Virtually Every Phase of the Master Budget for a Manufacturer