Consider the following statement:It is most sensible to start with the sales budget and develop the...

Question

Consider the following statement:It is most sensible to start with the sales budget and develop the other budget from there. After what you have learned this week with regards to budget processes and procedures,analyse the validityof this statement.Do you agree with the statement?Justify your answerbased on the week’s readings. How shouldsales revenuesbe considered whendetermining other costs?

David · Accepted Answer

Consider the following statement: It is most sensible to start with the sales budget and 
develop the other budget from there. After what you have learned this week with regards 
to budget processes and procedures, analyze the validity of this statement. Do you agree 
with the statement? Justify your answer based on the week’s readings. How should sales 
revenues be considered when determining other costs? 
Solution: Sales budget act as a foundation stone, when all the budgets have to be prepared. Sales 
budget is needed to be prepared first after considering all the necessary calculations, say for ex- 
increase or decrease from last year’s figures,

Consider the following statement:It is most sensible to start with the sales budget and develop the other budget from there. After what you have learned this week with regards to budget processes and...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment