Question

The sales budget is considered the cornerstone of the master budget because

A. it determines the amount of materials to purchase for production.
B. it is prepared last and summarizes all of the other elements of the budget.
C. it plays a minor role in the preparation of the operating budget.
D. the level of sales affects almost all of the other elements of the master budget.

Answer 1

D - the level of sales affects almost all of the other elements of the master budget.