Asked by Victor Nwakaihe on Jun 15, 2024
Verified
The merchandise purchases budget depends on information from the sales budget.
Merchandise Purchases Budget
A financial plan that estimates the amount of inventory a company needs to buy to meet sales needs for a future period.
Sales Budget
A detailed plan that outlines projected sales for a future period, taking into account factors like marketing strategies and market conditions.
- Identify the role and significance of the sales budget and how it influences other budgets.
Verified Answer
AC
Alonzo Calderon-BosticJun 19, 2024
Final Answer :
True
Explanation :
The merchandise purchases budget is based on the sales budget because it determines the amount of inventory needed to meet customer demand. Without the sales budget, there would be no basis for deciding how much to spend on merchandise purchases.
Learning Objectives
- Identify the role and significance of the sales budget and how it influences other budgets.