Question

Imagine you are the Sales Manager and responsible for the preparation and execution of the Sales budget. What are the objectives that you will try to achieve?

Options

• To plan and organise the production programme for achieving the sales target.

• Exercising control over cost and liquidity of the firm.

• To lay down the revenue goals of the enterprise.

• Scheduling the purchases of raw materials in required quantities at the required time.

Answer 1

To lay down the revenue goals of the enterprise.

Explanation:

A sales budget projects expected sales in both quantity and value, thereby laying down the enterprise’s revenue goals. It is the primary, or “nerve‑centre,” budget that guides production, purchasing, and other functional budgets to meet those targets.