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

Production
Material
Cash budget
Sales

The correct answer is D. Sales.

A sales budget is a financial plan that projects sales revenue for a specific period of time. It is the foundation for all other budgets in a company, as it provides the basis for estimating production, inventory, and cash needs.

A sales budget is typically prepared by forecasting sales for each product or service that a company offers. This forecast is based on historical sales data, economic trends, and marketing plans. Once the sales forecast is complete, it is used to develop budgets for production, inventory, and cash flow.

A sales budget is an important tool for planning and controlling a company’s financial performance. It helps to ensure that the company has the resources it needs to meet its sales goals, and it can be used to identify potential problems early on.

Here are brief explanations of the other options:

  • Production budget: A production budget is a financial plan that projects the quantity of goods or services that a company will produce in a specific period of time. It is based on the sales budget, as well as other factors such as inventory levels and production capacity.
  • Material budget: A material budget is a financial plan that projects the quantity of materials that a company will need to purchase in a specific period of time. It is based on the production budget, as well as other factors such as inventory levels and supplier lead times.
  • Cash budget: A cash budget is a financial plan that projects the cash inflows and outflows for a specific period of time. It is used to ensure that the company has enough cash on hand to meet its obligations.

I hope this helps!