A common starting point in the budgeting process is
A) expected future net income.
B) past performance.
C) to motivate the sales force.
D) a clean slate with no expectations.

Question

Quizplus · Accepted Answer

Past performance provides a good starting point in the budgeting process as it helps in evaluating the company's financial position and identifying areas for improvement. This information can then be used to set realistic goals and allocate resources effectively. Expected future net income may not be accurate and could lead to unrealistic expectations, while motivating the sales force is a separate goal that should not necessarily drive the budgeting process. A clean slate with no expectations may also not be practical as it overlooks valuable historical data.

A Common Starting Point in the Budgeting Process Is