the master budgeting process begins with the: multiple choice direct materials budget. sales budget. production budget. direct labor budget. factory overhead budget.

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04-11-2022
Business

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the master budgeting process begins with the: multiple choice direct materials budget. sales budget. production budget. direct labor budget. factory overhead budget.

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Qwcircle Qwcircle · Answer 1 · 2022-11-09T05:02:46-05:00

Option B is the correct answer. The master budgeting process begins with the Sales Budget.

While creating a master budget for a company, the budgeting is generally started by creating a budget for the Sales which is the Sales Budget. It tells the company's total revenue in a given amount of time period.

The sales budget is the financial plan of a company that estimates the total revenue generated by the company in a specific time period. This helps the company understand the sales requirement of the company in order to maximize their profits and generate more revenue for the sake of the company. This provides flexibility to work on the budgeting of the company.

Hence, Option B is the correct answer.

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