Master budget process for forecasting
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When beginning the master budgeting process, should the sales forecast come solely from the sales/marketing groups? Why or why not?
How would you model the adjustments for the operating cash receipts portion of the cash budget given this sales forecast information?
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The solution creates a master budget process for forecasting sales.
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When beginning the master budgeting process, should the sales forecast come solely from the sales/marketing groups? Why or why not?
The master budgeting process outcome is only as reliable as the information that is used in the preparation. Sales forecasting should not only come from the sales/marketing groups, as they are focused on one aspect of the business operations. While they may be able to forecast their potential to sell, there are other individuals within the corporation who can shed ...
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