The first component of the master budget is the
A)cash budget.
B)overhead budget.
C)pro-forma budget.
D)sales budget.

Question

Quizplus · Accepted Answer

The first component of the master budget is usually the sales budget, as it sets the foundation for all other aspects of the budget. The sales budget outlines the expected sales revenue for the budget period, and helps to determine the level of production necessary to meet those sales goals. The other components of the master budget, including the cash budget, overhead budget, and pro-forma budget, all rely on the sales budget as a starting point.

The First Component of the Master Budget Is the