Sales Forecasts Are the First Step in the Budgeting Process

question 120

Multiple Choice

Sales forecasts are the first step in the budgeting process of a merchandising firm because:

• A)The revenue data is 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 estimated sales demand.

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Definitions:

Value

The importance, worth, or usefulness of something, often influencing decisions and behaviors.

Mental

Pertaining to the mind or psychological processes, including thoughts, emotions, and cognitive functions.

Accountability

The responsibility to report, explain, and be answerable for resulting consequences of one's actions.

Task Activities

Actions or steps taken by individuals or groups to accomplish a specific task or assignment.