For a merchandiser the starting point in the development of the master budget is the
A) cash budget.
B) sales budget.
C) selling and administrative expenses budget.
D) budgeted income statement.

Question

Quizplus · Accepted Answer

For a merchandiser, the starting point in the development of the master budget is the sales budget as it is essential to forecast the level of sales before making decisions about production, inventory, and other operating expenses. The sales budget provides the basis for developing other budgets such as production, purchases, and selling and administrative expenses budget.

For a Merchandiser the Starting Point in the Development of the Master