21. When setting budgets, the lead budget (the one to start with) and most important budgets are usually:

A. “Sales” is the lead budget and “Cash” the most important

B. “Cash” is the lead budget and “Profit” the most important

C. “Production” is the lead budget and “Sales” the most important

D. “Cash” is the lead budget and “The Master Budget” the most important

Often the company is limited by demand. It may have the capability to produce a million widgets, but if it can only sell a thousand, it should only make a thousand!
Cash is the most important budget – a company must ensure it knows what cash is available.