What is the starting point in preparing a master budget?
A)the production budget
B)the sales budget
C)the direct labour budget
D)the purchases budget

Question

Quizplus · Accepted Answer

The starting point in preparing a master budget is typically the sales budget, as it will provide the basis for all other budgets such as production, direct labor, purchases, etc. The sales budget outlines the expected sales volume for the coming period and is generally prepared first as it provides a foundation for the budgeting process.

What Is the Starting Point in Preparing a Master Budget