Budgets allow a business to create a financial roadmap by setting goals and working to achieve those goals. A budget is an instrument of management used as an aid in the planning, programming and controlling of business activities. A sale is an exchange of money for goods, services or other property. Sales budget is the management’s estimation of sales for a future financial period. A company uses sales budgets in order to set department goals, estimate earnings and forecast production requirements. The sales budget affects both other operating budgets and the overall master budget of the company. It is considered as a forecast of the expected units a company intends to sell over a period of time. An organization prepares sales budget based on its business environment, overall economic condition, the intensity of competition in the market, production capacity, available funds etc.

Abhijith S

354 resources

0

1

0

Like