The First Step in the Master Budgeting Process Is to Prepare

question 31

Multiple Choice

The first step in the master budgeting process is to prepare:

• A) the sales budget.
• B) the production budget.
• C) a cash budget.
• D) a pro forma balance sheet.

---

Definitions:

Work Cell

A configuration of resources in a manufacturing environment arranged for the efficient production of a product, focusing on minimizing movement and wait times, often as part of a lean manufacturing strategy.

Staff Demand

The projected need for employees in an organization to meet its goals and workload.

Plant Operation

The activities involved in managing and running a manufacturing, processing, or production facility to produce goods or products.

Takt Time

The rate at which a product needs to be completed to meet customer demand, calculated as the available production time divided by customer demand.