sales budget

Answer 1

an organisation needs to budget to ensure that expenditure does not exceed planned income. it has been shown that the sales forcast is the starting point for business planing activities. the company costing function takes the medium-term sales forcast as its starting point, and from this budgets are allocated to departments (or cost centers). budgets state limits of spending, they are thus a means of control. the company can plan its profits based upon anticipated sales,minus cost of achieving those sales(which is represented in the total budget for the organisation. expenditures such as: sales people compensation, sales promotion,etc... I hope it helps
(From: SAEED SEPEHR - Dublin- IRELAND)