The budgeting process is MOST strongly influenced by the:
A)capital spending plan.
B)statement of expected cash flows.
C)demand forecasts.
D)production plan.

Question

Quizplus · Accepted Answer

Demand forecasts play a critical role in budgeting by providing estimates of future sales or demand, which are used to determine the level of production, inventory, and resources required. This information is then used to develop the budget for the upcoming period. While the other options (capital spending plan, statement of expected cash flows, and production plan) may also provide valuable information, demand forecasts are typically the most significant driver of the budgeting process.

The Budgeting Process Is MOST Strongly Influenced by The