Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Before using a particular sales forecast, the forecast should be reviewed with respect to:
A) sales projections based on all product lines.
B) sales projections based on economic forecasts.
C) sales forecasts by marketing department.
D) all of the above.

Question

Quizplus · Accepted Answer

Before using a sales forecast, it is important to review the forecast with respect to all factors such as sales projections based on all product lines, economic forecasts, and sales forecast by the marketing department. Therefore, option (D) is the correct choice.

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