The controlling factor in all budgeting and operational planning in a company is the:
A)Sales potential.
B)Sales quota.
C)Market potential.
D)Sales forecast.
E)Market share.

Question

Quizplus · Accepted Answer

The sales forecast is the most important factor in budgeting and operational planning as it helps in determining the expected revenue and sales volume, which in turn informs decisions related to expenses, inventory, and production. Sales potential, market potential, and market share are also important factors but they are dependent on the sales forecast. Sales quota is an internal goal set by the company to achieve a certain level of sales, but it is not the primary factor in budgeting and operational planning.

The Controlling Factor in All Budgeting and Operational Planning in a Company