The starting point in developing the master budget is the preparation of the ________.
A) cash budget
B) production budget
C) sales budget
D) budgeted income statement

Question

Quizplus · Accepted Answer

The master budget begins with the preparation of the sales budget, which provides the foundation for the development of other budgets such as the production, cash, and budgeted income statement. The sales budget outlines the expected sales of the business for the budget period, which is typically one year. Once the sales budget is established, other budgets can be developed to support it.

The Starting Point in Developing the Master Budget Is the Preparation