The sales budget tends to be produced early in the development of the pro forma income statement process for which of the following reasons?
A) It helps to know how much will be sold when making other planning decisions.
B) Inventory planning decisions depend on how much will be sold and when.
C) Sales revenue is the first item in an income statement.
D) Sales revenue is a large factor to be considered when determining the viability of a new venture.
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

The sales budget is crucial as it forecasts how much will be sold, influencing inventory planning, and is the first item on the income statement. It also plays a significant role in assessing the viability of a new venture.

The Sales Budget Tends to Be Produced Early in the Development