Which of the following is not a consequence of a sales budget developed by an overly optimistic marketing department?
A)Too much inventory may be produced.
B)Too much material will be ordered.
C)The company will fail to achieve its budgeted income.
D)More cash will be on hand than anticipated.

Question

Quizplus · Accepted Answer

An overly optimistic sales budget may lead to overproduction and excess inventory, but it does not necessarily mean that more cash will be on hand than anticipated. In fact, if sales fall short of the budgeted amount, the company may end up with less cash than anticipated.

Which of the Following Is Not a Consequence of a Sales