For a retail entity,the key variable which is normally the starting point for the budget process and upon which many other items are based is:
A) labour.
B) sales.
C) production.
D) fixed expenses.

Question

Quizplus · Accepted Answer

Sales are the key variable for a retail entity as it drives the revenue and is the starting point for the budget process. Other items such as labour, production, and fixed expenses are all dependent on the projected sales. Therefore, sales must be the starting point for the budget process for a retail entity.

For a Retail Entity,the Key Variable Which Is Normally the Starting