Skate Rink Company revised its sales budget to show a 15% increase in sales.As a result of this change, which other budgets would change?
A)all of its other budgets
B)only its selling and administrative expenses budget
C)its marketing budget only
D)only its production budget

Question

Quizplus · Accepted Answer

If the sales budget is revised, it is likely that production, purchasing, and other budgets will need to be adjusted accordingly to meet the new sales goals. Additionally, changes in sales could affect cash flow and financing budgets as well. Therefore, all of Skate Rink Company's other budgets would need to be revisited and revised to reflect the 15% increase in sales.

Skate Rink Company Revised Its Sales Budget to Show a 15