Which budget starts with the number of units to be sold?

The sales budget is the foundational document that begins with the estimated number of units to be sold during a specific period. This budget is crucial for determining the expected revenue from sales and helps in forecasting sales volume based on market analysis, historical sales trends, and other relevant factors.

Once the number of units is established in the sales budget, it provides the information needed for subsequent budgets, such as the production budget, which calculates the number of units that need to be produced to meet sales demand and inventory requirements. The cash budget and operating budget are influenced by the sales and production budgets but do not initially start with the sales volume. Thus, the sales budget is vital for creating an effective financial plan and aligning production and resource allocation with anticipated market demand.