Unit 5 - Sales Budget
Expected Sales Revenue = Expected Unit Sales Volume × Anticipated Unit Selling Price
Slide 9 Master Budget components
Advantages
- Guides sales programming for target achievement.
- Allocates resources effectively.
- Controls expenses for profit objectives.
- Measures progress and sales performance.
- Identifies areas for improvement.
Limitations
- Limited in predicting future trends.
- Not universally accepted within the organization.
- Time-consuming to prepare.
- Tends to avoid long-term investment.
Features
Internal
Sales volume
Product profitability
Advertising and promotions
Pricing strategy
Sales team efficiency
External
Public purchasing power
Government policies
Consumer preferences
Market competition
Wealth distribution