A plan showing the units of goods to be sold and the expected revenue from sales, which is the starting point in the budgeting process, is called the:

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Operating budget.
B	Manufacturing budget.
C	Sales forecast.
D	Merchandise purchases budget.
E	Sales budget.

Explanation:

Detailed explanation-1: -Sales budget is the first budget that is made by the company. It is estimated based on past sales experiences and trends of the company. Through the sales budget, the production budget is made. The production budget is the basis for making the other budgets for the production process.

Detailed explanation-2: -A sales budget is a financial plan that estimates a company’s total revenue in a specific time period. It focuses on two things-the number of products sold and the price at which they are sold-to predict how the company will perform.

Detailed explanation-3: -A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n): Sales budget.

Detailed explanation-4: -The sales budget is the starting point in putting together a comprehensive budget for a business. It includes the number of units to be sold and the selling price per unit. It is important to agree to the sales budget first because many other budgets are based on this data.

Detailed explanation-5: -A sales budget is an itemized plan that predicts your total expected sales revenue by considering the number of units you anticipate selling and the price you intend to sell them at. It sets a reference point for how much money you expect to bring in in a given period to guide goal setting and financial forecasting.

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