ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Estimate the cost of goods sold
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Forecast sales during the budget period
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Establish the basic goals and long-range plans for the company
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Forecast general and administrative expenses for the budget period
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Detailed explanation-1: -Answer and Explanation: The first step in preparing the master budget is the D) sales budget. Establishing the value of sales is the starting point of the budget. This is because all the firm’s operations will be based on the volume of the sales that needs to be achieved.
Detailed explanation-2: -The master budget has two major categories: the financial budget and the operating budget.
Detailed explanation-3: -The second element of budgeting is expenses. These are all the bills you have to pay each month, such as rent or mortgage payments, utilities, food, and transportation costs.
Detailed explanation-4: -Step 1: Create your sales budget. Step 2: Create a production budget. Step 3: Create a materials budget. Step 4: Create a direct labor budget. Step 5: Create an overhead budget. Step 6: Account for cost of goods sold. Step 7: Create an administrative budget. More items •18-May-2022