Which of the following statements best describes the relationship between the sales-forecasting process and the master-budgeting process?

Question

Quizplus · Accepted Answer

The sales forecast is typically completed before the master budget and has significant impact on the master budget. This is because the sales forecast provides the basis for the budgeted sales revenue, which is a key component of the master budget. The accuracy of the sales forecast is critical in determining the level of production, inventory, and expenses for the coming period. Therefore, the sales forecast is a key input to the master-budgeting process.

Which of the Following Statements Best Describes the Relationship Between