Define sales budget

Question

Give a short introduction of the term “sales budget”? While preparing the sales budget what are the factors which can be taken?

Answer 1

Sales budget is the budget of whole sales expressed in terms of money or quantity. It is the between two factors that is, sales selling price and quantity.

Factors are taken into consideration while predicting for sales quantity are illustrated below:

- Investigation of Past Trend
-Reports through Salesmen
-Market investigation and Market study
-General Economic situations

Factors are taken into account while predicting for selling price is illustrated below:

-Cost value of the product
-likely amount of profits
-Selling price charged through the competitors
-Advertisement and sales promotion methods employed through the company.