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Operating Budgets - Operating Budgets...

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Operating Budgets The operating budgets include the budgets for sales, manufacturing costs (materials, labor, and  overhead) or merchandise purchases, selling expenses, and general and administrative expenses. Sales budget The  sales budget  is the starting point in putting together a comprehensive budget for a business. It  includes the number of units to be sold and the selling price per unit. It is important to agree to the  sales budget first because many other budgets are based on this data. Although its components are  simple, getting a management team to agree on the number of units to be sold and the selling price  per unit, the two items needed to prepare the budget, is often difficult and time- consuming. The 
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