Multiple choice

Directions: Choose the correct option for the given question.

_____ forms the basis on which all other budgets are built up.

  1. Master budget

  2. Production budget

  3. Sales budget

  4. Summary budget

  5. Cash budget
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The sales budget is the starting point for the entire budgeting process because production, cash, and other operational budgets depend on the projected sales volume. Without a sales forecast, it is impossible to determine the necessary production levels or cash requirements.

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