ECONOMICS (CBSE/UGC NET)

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.

Detailed explanation-2: -The starting point of the master budget is the sales budget. The ending point of the master budget is the budgeted financial statements. Since the budgeted financial statements include both an income statement and balance sheet, each step in the master budget has both an income statement and balance sheet component.

Detailed explanation-3: -The sales forecast is forecasting the level of sales in the future. It involves taking into consideration all the factors which can affect the sales. It is usually the first step in the budgeting process. The production budget is the budget related to production.

Detailed explanation-4: -1. Assess your financial resources. The first step is to calculate how much money you have coming in each month. This might be investment income, government assistance, student loans, employment income, disability benefits, retirement pensions or money from other sources.