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The first step in the master budget planning process is which of the following? Question 21...

The first step in the master budget planning process is which of the following?

Question 21 options:

Sales Budget

Raw materials purchases budget

Projected Balance Sheet

Production Budget
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Answer #1

The first step in the master budget planning process is Sales budget.

Sales budget shows the planned sales units and expected revenue from the same. It is the starting point as plan for most of the budget are linked to sales.

Production budget shows the number of units to be produced in a period. It will take help from sales budget numbers to produce the same.

Raw material purchase budget shows the amount of raw material units we need to produce the goods and we take help from production budget for the same.Master.

Master budget is the aggregation of all the lower level budgets such as production,sales , raw material etc. and a startegy that documents the financial statements forecasts and financial plans.

Projected balance sheet is simply lists balances of assets, liabilties and capital for a specific future period

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