Cash disbursements (expenditures)are not closely tied to the sales forecast as the sales forecasts are not typically used for scheduling production.

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Cash disbursements are closely tied to the sales forecast because the sales forecast is often used for scheduling production, which in turn affects the timing and amount of cash outflows related to purchasing materials, paying labor, and other production-related expenses.

Cash Disbursements (Expenditures)are Not Closely Tied to the Sales Forecast