In order to prepare the sales budget, one needs the number of units
A)expected to be produced and the prices expected to be charged.
B)expected to be sold and the cost of producing each unit.
C)expected to be sold and the prices expected to be charged.
D)sold in the previous period and the price charged for the units.

Question

Quizplus · Accepted Answer

The sales budget is prepared based on the expected number of units to be sold and the prices expected to be charged. Therefore, choice C is the correct option as it includes both of these necessary components for preparing the sales budget. The other options either do not include both components, or are focused on past data rather than future expectations.

In Order to Prepare the Sales Budget, One Needs the Number