Final answer:
The most common starting point in the information gathering process for budgeting is the sales forecast. It provides an estimate of the expected revenue generated by the company.
Step-by-step explanation:
The most common starting point in the information gathering process for budgeting is the sales forecast. The sales forecast provides an estimate of the expected revenue generated by the company. By analyzing past sales data and market trends, the company can predict future sales and use this information as a basis for budgeting.
For example, if a company expects higher sales in the upcoming year, they may allocate more funds towards marketing and production to meet the increased demand. On the other hand, if sales are projected to decrease, the company may need to make adjustments to their budget to accommodate the expected lower revenue.
Once the sales forecast is established, other elements of the budgeting process, such as personnel forecasting, production forecasting, and projected income statements, can be developed based on the anticipated sales volume.