Sales budget
A sales budget states the planned quantities, selling prices and resulting revenue for the period, often analysed by product, market or month. It draws on demand, capacity, strategy and other relevant assumptions. Revenue planning is not the same as cash receipts planning: collection timing, credit terms and opening receivables affect cash. Use quantities and prices consistently and check whether discounts or taxes have been included in the stated amounts.
Worked example
Product A budget is 2,000 units at $30 and B is 1,000 at $50. Total planned revenue is $110,000 before any further specified adjustments.
Common mistake
Do not use units produced as sales when inventory changes, or treat all planned credit sales as cash collected in the same month.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Supporting | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
