Question

The first budget customarily prepared as part of an entity's master budget is the Group of answer choices sales budget cash budget direct materials purchases production budget

Answer 1

sales budget

Step-by-step explanation:

The master budget is a document in which a company shows all the budgets for each department to have the whole picture of the business finances. Usually, it begins with the sales budget that is created using the sale forecast that is adjusted based on additional information and the manager's judgement. This is the first budget because it affects the other budgets as the level of production would depend on the expected sales. According to this, the answer is that the first budget customarily prepared as part of an entity's master budget is the sales budget.

Answer 2

Sales budget

Step-by-step explanation:

A budget is an amount that is planned and set aside to be used for a particular purpose. It helps a business entity plan and efficiently use its resources.

As a business the first budget that is usually prepared is the sales budget. This is the primary purpose of the entity, to sell and make profit.

As profit is generated from sales other activities can easily be budgeted for.

Master budget is collection of all lower budgets of a business