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Question

________ budget is the most important budget and it forms the basis on which all the other budgets are built up.

A
Production
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B
Material
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C
Cash
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D
Sales
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Solution

The correct option is B Sales
Sales budget is first or basic component of budgeting process which shows the expected number of units to be sold with an expected price in a particular period. Once sales budget is prepared, the other budget can be built up.

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