Which of the Following Statements Is Not Correct

question 115

Multiple Choice

Which of the following statements is not correct?

• A) The sales budget is the starting point in preparing the master budget.
• B) The sales budget is constructed by multiplying the expected sales in units by the sales price.
• C) Using methods such as trend analysis and the Delphi technique can help reduce subjectivity in forecasting sales.
• D) The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period.

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Definitions:

Satellite Scans

Techniques using satellites to remotely analyze and record data from Earth, such as weather patterns, environmental changes, and geographic information.

Tropical Rain Forests

Rich, dense forests found in tropical regions, characterized by high rainfall and biodiversity, acting as vital carbon dioxide sinks.

Lumber Sales

The process or activity of selling wood that has been processed into beams and planks.

Firebreaks

Cleared areas or barriers used to stop or slow the spread of wildfire.