Why is a sales budget important?
Quick Answer
A sales budget is important because it helps the company determine how much revenue it's expected to make on a product, how much the expenses will be and how many units will need to be produced for the period. Therefore, the sales budget serves as an important planning tool for the company overall. It can also help the company monitor its performance if the company compares actual sales to projected sales.
Continue ReadingFull Answer
A company sometimes groups its products into specific categories on the sales budget, and it's common for the budgets to be prepared either monthly or every 3 months. Marketing professionals have a large influence on the budget as they can predict how sell a product or service will sell, and the production department relies on these figures to make sure enough supplies are on hand to produce the products to be sold.
Learn more about Marketing & SalesRelated Questions
-
Q:
What is a good sales report format?
A: An effective format for a sales report reflects the nature of the sales date and the company from which it comes, often featuring a series of columns that ... Full Answer >Filed Under: -
Q:
What is "low cost pricing strategy" in marketing?
A: A low cost pricing strategy in marketing is an attempt by a company to increase sales by offering a product or service at a low price relative to competito... Full Answer >Filed Under: -
Q:
How do you use a profit loss template form?
A: To use a profit-and loss template form, input all of the business sales and product costs to determine gross profits, and then subtract all of the expenses... Full Answer >Filed Under: -
Q:
What are differences between static and flexible budgets?
A: A static budget refers to a budget set by a company that predicts a certain level of sales and output before a sales period begins, while a flexible budget... Full Answer >Filed Under:
