Operating and financial budgets. Which of the following statements is correct regarding the drivers of operating and financial budgets? The sales budget will drive the cost of goods sold budget. The cost of goods sold budget will drive the units of production budget. The production budget will drive the selling and administrative expense budget. The cash budget will drive the production and selling and administrative expense budgets.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Operating and financial budgets. Which of the following statements is correct regarding the drivers of operating and financial budgets?
- The sales budget will drive the cost of goods sold budget.
- The cost of goods sold budget will drive the units of production budget.
- The production budget will drive the selling and administrative expense budget.
- The
cash budget will drive the production and selling and administrative expense budgets.
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