The first budget customarily prepared as part of an entity's master budget is the:
A) production budget
B) cash budget
C) sales budget
D) direct materials purchases

Question

Quizplus · Accepted Answer

The sales budget is typically the first budget prepared in a master budget as it is used to forecast the expected sales revenue for the period. This information is important for preparing the other budgets in the master budget, such as the production budget and cash budget. The direct materials purchases budget is typically prepared after the production budget, as it relies on the production quantities and requirements.

The First Budget Customarily Prepared as Part of an Entity's