A Sales Forecast Is the First Step in the Budgeting

question 141

Multiple Choice

A sales forecast is the first step in the budgeting process of a merchandising firm because:

• A) The revenue data are easiest to generate.
• B) Sales information is precise in amount.
• C) Sales personnel have the quickest access to data.
• D) Sales forecasts are the most objective of all budgeted activities.
• E) Almost all activities of a firm emanate from (i.e., are linked to) estimated sales demand.

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Definitions:

Cassette

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Cholangiogram

An imaging test that uses a contrast dye to visualize the bile ducts for diagnostic purposes.

Cholecystogram

An X-ray exam of the gallbladder, which uses a special dye to highlight abnormalities.