Explain sales budget? What factors are taken into consideration while preparing it?

Explain sales budget? What factors are taken into consideration while preparing it?


Sales budget is the budget of total sales expressed in terms of quantity or money. It is the between two factors i.e. sales quantity and selling price.

Following factors are taken into consideration while forecasting for sales quantity:

- Analysis of Past Trend

- Reports by Salesmen

- Market Research and Market Survey

- General Economic Conditions

Following factors are taken into account while forecasting for selling price:

- Cost price of the product

- Expected amount of profits

- Selling price charged by the competitors

- Advertisement and sales promotion techniques used by the company.
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