Which of the following is true of the sales budget?
A)It provides sales values that are used to prepare financial statements for external reporting purposes.
B)It captures the variable and fixed expenses of the business.
C)It is used in the production budget.
D)It shows the value of expected production in a period.

Question

Quizplus · Accepted Answer

The sales budget is used in the production budget to determine the amount of goods or services that need to be produced in a given period based on expected sales. Option A is incorrect because the sales budget is not used for external reporting purposes. Option B is incorrect because the sales budget only captures the expected sales revenue, not expenses. Option D is incorrect because it does not show the expected production, but rather the expected sales.

Which of the Following Is True of the Sales Budget