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The sales budget is the starting point for the master budget. Discuss how it is prepared....

The sales budget is the starting point for the master budget. Discuss how it is prepared. Why is its accuracy so important?

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Answer #1

The sales budget is prepared with the help estimated units sold each period and budgeted selling per unit. The accuracy of sales budget is important as the sales budget is the starting point for all the budgets prepared like the production budget, raw material purchases budget, direct labor budget etc.

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