The Role of Sales Budget in the Production

1 January 2017

The sales budget is a conservative estimate on the estimated size of the sales, mainly used for the purchase, production and cash flow decisions. Clearly, the marketing budget should not only consider sales forecasts, but also to avoid excessive risk, general sales budget should be slightly lower than the corporate predictive value. Sales budget is usually the starting point of production and operation of comprehensive budget preparation, production, material procurement, inventory costs and other aspects of the budget should be based on the sales budget.

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The marketing budget costs and sales goals linked. The sales budget is a financial plan, which includes the cost of the marketing budget marketing plan objectives, in order to ensure the realization of the profits of the company’s sales. The sales budget is only after the completion of the sales forecast, sales target is broken down into multiple levels of sub-goals. Once these sub-goals are determined, the corresponding cost of sales has also been finalized.

Sales budget was based on sales forecast, and which based primarily on the analysis of historical sales of various products, combined with information on a variety of products in the market forecast development prospects, first by product, region, customer and other items to be prepared, and then make merged and summarized. Determine future projected sales and the sales price based on sales forecasts, calculate the expected revenue: Projected sales revenue= the expected sales? xpected sales unit price.

According to the company’s financial sector statistics for the last few days, in January, fly ash dryer, drum dryer, flotation cells and other equipment accounted for more than 60% of sales in terms of sales. Therefore, we can say these devices are currently in great demand in the market. Among them standard and short head type are popular.

Their main differences between are the section shape of crush chamber and parallel band length. The movable cone of standard type inclines steep, the parallel band is short; the short head type inclines gentle, the parallel band is long, the features movable cone of middle type are between the two types.

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