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MANAGEMENT ACCOUNTING

Sales budget – meaning

Sales budget is one of the important functional budgets. Sales estimate is the commencement of budgeting may be made in quantitative terms. Sales budget is primarily concerned with forecasting of what products will be sold in what quantities and at what prices during the budget period. Sales budget is prepared by the sales executives taking into account number of relevant and influencing factors such as:

  • Analysis of past sales
  • , key factors
  • , market conditions
  • production capacity government restrictions
  • competitor’s strength and weakness
  • advertisement
  • publicity and sales promotion
  • pricing policy
  • consumer behaviour
  • nature of business
  • types of product
  • company objectives salesmen’s report
  • marketing research’s reports
  • product life cycle.

By amidu edson

I am certified accountant with more than 5 years of teaching experience. Currently am teaching auditing and assurance, management accounting and financial accounting for student preparing for professional exams such as ACCA and CPA.

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