Which of the following is TRUE of the sales budget?
A) It provides sales data that is used to prepare financial statements for external reporting purposes.
B) It captures the variable and fixed expenses of the business.
C) It is used in the production budget.
D) It shows the cost of expected production in a period.

Question

Quizplus · Accepted Answer

The sales budget is used in the production budget to determine the quantity of units that need to be produced to meet sales goals. Option A is incorrect because the sales budget is not used for external financial reporting. Option B is incorrect because it captures only sales-related expenses, not all variable and fixed expenses. Option D is incorrect because it does not show the cost of expected production, but rather the expected sales revenue.

Which of the Following Is TRUE of the Sales Budget