The budget that is prepared first of all is . . . . . . . .

cash budget
master budget
budget for the key factor
sales budget

The correct answer is: D. sales budget

A sales budget is a financial plan that projects sales revenue for a specific period of time. It is the foundation of the master budget, which is a comprehensive financial plan for an organization. The sales budget is prepared first because it is the most important factor in determining the financial needs of the organization.

A cash budget is a financial plan that projects cash receipts and disbursements for a specific period of time. It is used to ensure that the organization has sufficient cash on hand to meet its obligations.

A budget for the key factor is a financial plan that projects the costs associated with a key factor in the organization’s operations. For example, a manufacturing company might prepare a budget for the key factor of direct labor.

The master budget is a comprehensive financial plan for an organization. It is prepared by combining the sales budget, the cash budget, and other budgets for the organization’s various departments and activities.

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