Which of the Following Describes the Sales Budget

question 93

Multiple Choice

Which of the following describes the sales budget?

• A) It aids in planning to ensure the company has adequate inventory on hand.
• B) It represents a breakdown of total sales for each product by multiplying the price by the total projected units to be sold.
• C) It helps in planning to ensure the business has adequate cash.
• D) It captures the variable and fixed expenses of the business.

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Definitions:

Catalog Price

The listed price of goods or services in a catalog, before any discounts or adjustments.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Net Price Method

A pricing strategy taking into account all available discounts and rebates to determine the final purchase price.