A Manufacturing Firm Would Begin Preparation of Its Master Budget

question 91

Multiple Choice

A manufacturing firm would begin preparation of its master budget by constructing a:

• A) sales budget.
• B) production budget.
• C) cash budget.
• D) capital budget.
• E) set of pro-forma financial statements.

---

Definitions:

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Homeostasis

The ability of an organism or environment to maintain stability in response to changes.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.