The usual starting point in the budgeting process is a plan showing the planned sales units and the revenue expected from these sales.This plan is called the:
A)Operating budget.
B)Business plan.
C)Income statement budget.
D)Merchandise purchases budget.
E)Sales budget.

Question

Quizplus · Accepted Answer

The sales budget is the plan showing the planned sales units and the revenue expected from these sales. It is the usual starting point in the budgeting process. The operating budget includes other budgets, such as the merchandise purchases budget and income statement budget, but the sales budget is specifically designed to estimate and plan for sales revenue. Therefore, choice E is the best answer.

The Usual Starting Point in the Budgeting Process Is a Plan