Production budget starts from:
AMaterial budget
BCash budget
CSales budget
DMaster budget
Answer & Solution
Correct answer: C. Sales budget
1. The sales budget sets the volume the firm must satisfy.
2. Production volume is derived from sales after adjusting for changes in finished goods inventory.
3. Hence the production budget begins with the sales budget.
4. The master budget consolidates results at the end of the chain.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.7.2 ¶2_
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