ECONOMICS

Detailed explanation-1: -An open-to-buy plan is a purchasing budget for future inventory orders that a retailer creates for a specific period.

Detailed explanation-2: -A plan that states the units or costs of merchandise to be purchased by a retailer or wholesaler during the budget period is called a: Merchandise purchases budget.

Detailed explanation-3: -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-4: -What is the Purchases Budget? A purchases budget contains the amount of inventory that a company must purchase during each budget period. The amount stated in the budget is the amount needed to ensure that there is sufficient inventory on hand to meet customer orders for products.

Detailed explanation-5: -Sales Budget: The degree of accuracy with which sales are estimated will determine the practicability of operating budgets. A sales budget is the starting point on which other budgets are also based. A sales budget lays down potential sales figures in value as well as in quantity.