The Happy Company is preparing a budgeted income statement.The dollar amount for Sales comes from ________.
A)the sales forecast
B)the sales manager
C)the sales budget
D)the sales from competitors

Question

Quizplus · Accepted Answer

The sales budget is the primary source for determining the dollar amount of sales in a budgeted income statement. The sales budget is prepared based on sales forecast and input from the sales department but ultimately reflects management's expectations for sales in the upcoming period. Sales from competitors or input from the sales manager may inform the sales budget, but they are not the direct source for the dollar amount of sales in the budgeted income statement.

The Happy Company Is Preparing a Budgeted Income Statement