Question

Budget relating to the key factor is prepared __________.

• A. After other budgets
• B. With other budgets
• C. Before other budgets
• D. None of these

Answer 1

Answer: (C)

Before other budgets

Budget relating to key factor is prepared first and all other budgets follow it. The key factor can be external or internal. the internal key factor can be sales, material, labour, plant capacity or management. The external key factor may be government policy, market condition.