The first step in the master budgeting process is to prepare:
A) the sales budget.
B) the production budget.
C) a cash budget.
D) a pro forma balance sheet.

Question

Quizplus · Accepted Answer

The first step in the master budgeting process is to prepare the sales budget. This budget serves as the basis to plan for other budgets such as production budget, purchasing budget, and labor budget. The sales budget estimates the expected sales for a period of time, which helps in determining the volume of production, inventory levels, and other related costs.

The First Step in the Master Budgeting Process Is to Prepare