meaning of sales budget in managerial accounting

Sales budget – meaning

The sales budget is one of the important functional budgets. Sales estimate is the commencement of budgeting that may be made in quantitative terms. The sales budget is primarily concerned with forecasting of what products will be sold in what quantities and at what prices during the budget period. The sales budget is prepared by the sales executives taking into account a number of relevant and influencing factors such as:



  • Analysis of past sales
  • , key factors
  • , market conditions
  • Production capacity government restrictions
  • The competitor’s strength and weakness
  • advertisement
  • Publicity and sales promotion
  • Pricing policy
  • Consumer behavior
  • Nature of business
  • Types of product
  • Company objectives salesmen’s report
  • Marketing research’s reports
  • Product life cycle.

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