Asked by
Ashanta Campbell
on Oct 15, 2024
Verified
The usual starting point for preparing a master budget is forecasting or estimating:
A) Expenditures.
B) Sales.
C) Production.
D) Income.
E) Cash payments.
Master Budget
The master budget is a comprehensive financial planning document that consolidates all of a company's individual budgets, forecasting future financial activities.
Sales
Deals involving the swapping of products or services for monetary value, which constitute the main income stream for numerous companies.
Forecasting
The process of making predictions about future events or trends based on historical data and analysis, commonly used in finance and operations planning.
- Understand the concept and components of a sales budget.
- Pinpoint the fundamental components of budget preparation, initiating with sales predictions and concluding with the budgeting of cash flows and financial reports.
Verified Answer
KA
Learning Objectives
- Understand the concept and components of a sales budget.
- Pinpoint the fundamental components of budget preparation, initiating with sales predictions and concluding with the budgeting of cash flows and financial reports.