Sales Budgeting
SALES BUDGETING AND FORECASTING OF BRITANNIA
Group members: Rating:
Abhinav Aggarwal – 01 5
Avnita Agrawal – 02 5
Srishti Chitlangia – 10 5
Humera Khan – 26 5
Priya Majhi – 45 5
Zain Shaikh – 59 5
Vinay Singh – 68 5
SALES BUDGETING:-
Meaning of Sales Budget
Sales Budget reflects the targeted sales revenue. Sales Expense budget shows the expenses necessary to reach the targeted sales revenue. Through these two statements sales management can reconcile these revenues & expenses with the firm’s objectives. Thus, sales budgeting is concerned with improving selling efficiency & reducing the selling costs.
More specifically, Sales Budget is a detailed program developed for a specified period that indicates the anticipated sales & selling expenses. The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit selling price. Each of the other budgets such as production budget, direct material budget, direct labor budget, manufacturing overhead budget & Selling and administration budget depends on the sales budget. It is derived from the sales forecast. It represents management’s best estimate of sales revenue for the budget period.
Objectives of Sales Budget:- 1. Planning :-
The company formulates marketing and sales objectives; the budget determines how these objectives will be met through a detailed breakdown of the sales budget among products, territories and customers.
2. Co-ordination:-
The budget establishes what the cost of various heads b thereby maintaining a desired relationship between expenditure and revenues. The budget enables sales executives to coordinate expenses with sales. It also restricts the sales executives form spending more that their share of the funds helping to prevent expenses from getting out of control. 3. Control:-
The sales budget enables sales
Group members: Rating:
Abhinav Aggarwal – 01 5
Avnita Agrawal – 02 5
Srishti Chitlangia – 10 5
Humera Khan – 26 5
Priya Majhi – 45 5
Zain Shaikh – 59 5
Vinay Singh – 68 5
SALES BUDGETING:-
Meaning of Sales Budget
Sales Budget reflects the targeted sales revenue. Sales Expense budget shows the expenses necessary to reach the targeted sales revenue. Through these two statements sales management can reconcile these revenues & expenses with the firm’s objectives. Thus, sales budgeting is concerned with improving selling efficiency & reducing the selling costs.
More specifically, Sales Budget is a detailed program developed for a specified period that indicates the anticipated sales & selling expenses. The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit selling price. Each of the other budgets such as production budget, direct material budget, direct labor budget, manufacturing overhead budget & Selling and administration budget depends on the sales budget. It is derived from the sales forecast. It represents management’s best estimate of sales revenue for the budget period.
Objectives of Sales Budget:- 1. Planning :-
The company formulates marketing and sales objectives; the budget determines how these objectives will be met through a detailed breakdown of the sales budget among products, territories and customers.
2. Co-ordination:-
The budget establishes what the cost of various heads b thereby maintaining a desired relationship between expenditure and revenues. The budget enables sales executives to coordinate expenses with sales. It also restricts the sales executives form spending more that their share of the funds helping to prevent expenses from getting out of control. 3. Control:-
The sales budget enables sales