The sales forecast is the cornerstone for$$ budgeting." Do you$$ agree? Explain.

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Part $1$

A$.$

Because production$($and$,$ hence,$$ costs$)$ and inventory levels generally depend on the forecasted level of sales.

B$.$

The sales forecast is based on$$ demand, and without demand for the product there would be no sales.

C$.$

The cost of goods sold$$ budget, as the starting point for the operating$$ budget, uses the budgeted unit sales.

D$.$

Because fixed operating costs depends on the forecasted level of sales.