The first step in preparing a master budget is to prepare a _____ budget.
A) production
B) direct materials
C) sales
D) direct labor

Question

Quizplus · Accepted Answer

The first step in preparing a master budget is to prepare a sales budget, which provides the foundation for all other budgets. The sales budget estimates the expected sales revenue for the budget period and serves as a guide for planning production, determining the required level of resources, and setting financial goals.

The First Step in Preparing a Master Budget Is to Prepare