Why is the sales budget the single most important source in preparing budgets?
A)All the other budgets depend on it.
B)It enables the company to determine the unit cost of products.
C)It is the best determination of profitability of a company.
D)It is the only budget that requires estimates.

Question

Quizplus · Accepted Answer

The sales budget serves as the foundation for all other budgets. Without accurate sales forecasts, budgets for production, purchasing, marketing, and other areas cannot be developed effectively. Therefore, the sales budget is critical for ensuring that all other budgets are aligned with the company's overall sales goals and objectives.

Why Is the Sales Budget the Single Most Important Source