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Explain Sales budget
A sales budget is an estimate of expected sale during a budget period. A sales budget is known as a nerve center or backbone of the enterprise. The degree of accuracy with which sales are estimated will determine the practicability of operating budget. A sales budget is the starting point on which other budgets are also based.
A sales budget lays down potential sales figures in value as well as in quantity it lay down a comprehensive plan and programmed for sales department. The sales manager is made responsible for preparing sales budget. He uses all possible information available from internal and external sources.
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