Consider the following statement:It is most sensible to start with the sales budget and develop the other budget from there. After what you have learned this week with regards to budget processes and...

Consider the following statement: It is most sensible to start with the sales budget and
develop the other budget from there. After what you have learned this week with regards
to budget processes and procedures, analyze the validity of this statement. Do you agree
with the statement? Justify your answer based on the week’s readings. How should sales
revenues be considered when determining other costs?
Solution: Sales budget act as a foundation stone, when all the budgets have to be prepared. Sales
budget is needed to be prepared first after considering all the necessary calculations, say for ex-
increase or decrease from last year’s figures, sales estimation based...