Purpose:
It allows Glentruan to forecast things that will happen in the business of fine furniture manufacture. To know the suitable spending on advertisement, production and other components in the Glentruan organization.
It helps the company to plan objects for every employee to overcome and get all problems solved.
It will give the company’s forecast of sales amount in near or far future (ask, n.d).
The sales budget indicates the sales for each month from March to June. In March, sale by 105 % and the 80% inventory. The number of prior period’s unit sales from the April (10,000) that the current period’s unit sales (part 1) for March (10,000). According to the prior period’s unit sales, we can calculate the project purchases for March.