When creating the monthly sales budget, management simply takes the sales from the year before and divides that total by 12 months.

Question

Quizplus · Accepted Answer

While using the sales from the previous year can be a starting point for creating a sales budget, it is not sufficient on its own. Management should also consider factors such as market trends, sales goals, changes in pricing or products, and anticipated expenses in order to create an accurate and effective monthly sales budget.

When Creating the Monthly Sales Budget, Management Simply Takes the Sales