Tuesday, February 10, 2009

Level of Sales Importance

In any retailing/ manufacturing company, the level of sales can have a significant impact on other areas of the firm’s activities. Level of sales volume can determine the production budgets, cash collections, cash payments, and selling and administrative budgets for the entire year.

Eventually, with changes in the level of sales, these factors determine the cash budget, budgeted income statement and ultimately the balance sheet of a firm.

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