acc - 220 - week 7 dq 2

acc - 220 - week 7 dq 2 - unit sales volume for each...

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Some of the different types of budgets include sales, production, direct materials, budgeted income statement, capital expenditure budget, cash budget, and budgeted balance sheet. The sales budget is the initial budget arranged. All of the other budgets depend on the sales budget. The sales budget is derived from the sales forecast. It stands for management’s best estimate of sales revenue for the budget period. A mistaken sales budget might negatively affect net income. An overly optimistic sales budget might effect in excessive inventories that might have to be sold at reduced prices. In contrast, an unduly conservative budget might effect in loss of sales revenue due to inventory shortages. The sales budget is prepared by multiplying the expected
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Unformatted text preview: unit sales volume for each product by its anticipated unit selling price. The Bricks Company, sales volume is expected to be 2,000 units in the first quarter, with 500-unit increments in each succeeding quarter. Based on a sales price of $50 per unit, the sales budget for the year, by quarters. Some businesses classify the projected sales revenue as cash or credit sales and by geographical regions, territories, or salespersons. An example of the Bricks Company Sales Budget below: Bricks Company Sales Budget Expected unit sales Quarter 1 2 3 4 Year 2,000 2,500 3,000 3,500 11,000 Unit selling price X 50 X 50 X 50 X 50 X 50 Total sales $100,000 $125,000 $150,000 $175,000 $550,000...
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This note was uploaded on 12/12/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Winter '10 term at University of Phoenix.

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