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1. 2. The Sales Budget is usually the first and most crucial of the component budgets in a master budget because all other budgets rely
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The Sales Budget is usually the first and most crucial of the component budgets in a master budget because all other budgets rely on it for planning purposes. Assume your company's sales staff provides information on the expected sales and selling prices for items making up the sales budget. Prepare a short memo to your supervisor outlining concerns with the sales staff's input in the sales budget when its compensation is partly tied to these budgets in the form of commissions Explain the bias that may exist in the sale budget. What other factors (external needs to be considered when setting the sales budget? What part of the sales budget do these factors have an influence on? Be specific. The Sales Budget is usually the first and most crucial of the component budgets in a master budget because all other budgets rely on it for planning purposes. Assume your company's sales staff provides information on the expected sales and selling prices for items making up the sales budget. Prepare a short memo to your supervisor outlining concerns with the sales staff's input in the sales budget when its compensation is partly tied to these budgets in the form of commissions Explain the bias that may exist in the sale budget. What other factors (external needs to be considered when setting the sales budget? What part of the sales budget do these factors have an influence on? Be specificStep by Step Solution
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