________ provide(s)the starting point for developing the operating budget.
A)The demand forecast
B)Projected income statement
C)The production plan
D)Expected cash flows

Question

Quizplus · Accepted Answer

The demand forecast provides an estimate of expected sales and revenues, which is essential for planning and budgeting activities. Without this information, it would be difficult to estimate the resources needed to meet customer expectations, manage inventory levels, and allocate expenses. Therefore, the demand forecast is typically the starting point for developing the operating budget, as it provides a basis for estimating expenses, revenues, and profits. The other options listed may be used in developing the budget but are not the starting point.

________ Provide(s)the Starting Point for Developing the Operating Budget