ECONOMICS

Detailed explanation-1: -The sales forecast is forecasting the level of sales in the future. It involves taking into consideration all the factors which can affect the sales. It is usually the first step in the budgeting process. The production budget is the budget related to production.

Detailed explanation-2: -1. Assess your financial resources. The first step is to calculate how much money you have coming in each month. This might be investment income, government assistance, student loans, employment income, disability benefits, retirement pensions or money from other sources.

Detailed explanation-3: -The first step in the forecasting process is to define the fundamental issues impacting the forecast. The results of this initial step will provide insight into which forecasting methods are most appropriate and will help create a common understanding among the forecasters as to the goals of the forecasting process.

Detailed explanation-4: -The last step in the budgeting process is developing a sales forecast. A sales budget should be prepared before the production budget. The direct materials budget contains only quantity data so the purchasing department knows how much materials should be purchased.