The master budgeting process typically begins with the sales budget and ends with a cash budget and:
A)Budgeted financial statements.
B)Forecast budget.
C)Capital expenditures budget.
D)Rolling budget.
E)Production budget.

Question

Quizplus · Accepted Answer

The sales budget is typically the starting point of the master budgeting process and is followed by the preparation of other budgets such as the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, selling and administrative expense budget, and ultimately the budgeted financial statements. The cash budget is usually the final budget in the process, as it summarizes the expected cash inflows and outflows for the budget period. Therefore, budgeted financial statements (Choice A) are the best choice for the missing last piece of information.

The Master Budgeting Process Typically Begins with the Sales Budget