Information on expected sales and selling prices


Suppose that your company's sales staff provides information on expected sales and selling prices for items making up the sales budget. Prepare a one-page memorandum to your supervisor outlining concerns with the sales staff's input in sales budget when its compensation is at least partly tied to these budgets. More generally, explain the importance of assessing any potential bias in information provided to the budget process.

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Accounting Basics: Information on expected sales and selling prices
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