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Question
Which budget forms the fundamental basis on which all other budgets are built up.
Options
Cash Budget
Purchase Budget
Master Budget
Sales Budget
Solution
Sales Budget
Explanation:
The sales budget is the first or basic component of the budgeting process. It shows the expected number of units to be sold at an expected price in a particular period. Once the sales budget is prepared, the other budgets can be built up.
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RELATED QUESTIONS
Which of the following is not the part of master budget?
Sales budget shows the sales details as ______.
______ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.
Production budget is prepared to achieve which of the following objectives?
Which factors are taken into consideration while preparing production budget?
Distinguish between production budget and material budget.
Why is a Master Budget also known as a Summary Budget?
What are the factors to considered while preparing sales budget.
Write short note on Purchase Budget.
Write short note on Capital Expenditure Budget.
