The usual starting point for preparing a master budget is forecasting or estimating:
- Multiple Choice
- Cash payments
Answer: The usual starting point for preparing a master budget is forecasting or estimating Sales.
The budgeted sales are estimated at the beginning for preparation of the Sales Budget.
The sales budget serves as the basis for the preparation of other budgets followed by The production budget, Materials Budget, Labor budget, Overhead budget, Selling expense budget, and Financial Budgets.