Asked by Jenna D'Amour on Apr 30, 2024
Verified
The sales budget is derived from the production budget.
Sales Budget
An estimate of the expected total sales revenue and the necessary selling expenses for a specific period, often broken down by product line or category.
Production Budget
An estimation of the costs associated with the production process, including raw materials, labor, and overhead expenses, for a specific period.
- Discern the essential role and implications of the sales budget on the planning of other financial budgets.
Verified Answer
EB
Evaejua BartlettMay 06, 2024
Final Answer :
False
Explanation :
The sales budget is the foundation for the production budget, not the other way around. The sales budget outlines the expected sales for the budget period, which is then used to determine how much product needs to be produced.
Learning Objectives
- Discern the essential role and implications of the sales budget on the planning of other financial budgets.
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