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Budget: Sales and Purchased

Compare and contrast sales budget and merchandise purchases budget. How is the sales budget prepared? How is the merchandise purchases budget constructed?

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The response address the queries posted in 469 words with references.
//Prior to discussing the difference between the sales budget and the merchandise budget in the first section of the discussion paper, the concept of the sales budget and purchase budget is given in detail.//

Budget: Sales and Purchased

Comparison between sales and purchase budget

Sales budget states the volume and value of sales during the budget period. In other words, the budget, which shows the volume and value of sales of a business, firm or company during the budget period, is known as Sales Budget. Sales budget is really a sales forecast of a plan period. It is also known as revenue budget. It is the starting point of the Master Budget (Agarwal, Vijay & Surolia).

Purchase budget states the purchases, which are ...

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