multiple select question\nselect all that apply\nwhich statements regarding a sales or revenue forecast are…

multiple select question\nselect all that apply\nwhich statements regarding a sales or revenue forecast are true?\n□ it is the forecast of \activity\ that is expected during the budget period.\n□ it is developed using an estimate of the physical quantity of goods or services to be sold, multiplied by the expected selling price per unit.\n□ it is based on the income statement budget and the balance sheet budget.\n□ it is the key to the overall operating budget.\nneed help? review these concept resources.\nread about the concept

multiple select question\nselect all that apply\nwhich statements regarding a sales or revenue forecast are true?\n□ it is the forecast of \activity\ that is expected during the budget period.\n□ it is developed using an estimate of the physical quantity of goods or services to be sold, multiplied by the expected selling price per unit.\n□ it is based on the income statement budget and the balance sheet budget.\n□ it is the key to the overall operating budget.\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

  1. A sales or revenue forecast is not just a forecast of "activity" during the budget period. It's more about expected income from sales. So the first statement is false.
  2. Revenue forecast is indeed developed by estimating the physical quantity of goods or services to be sold and multiplying it by the expected selling - price per unit.
  3. The revenue forecast is not based on the income statement budget and balance sheet budget. Instead, it is a key input for preparing the income statement budget. So the third statement is false.
  4. The sales or revenue forecast is a crucial component and the key to the overall operating budget as it drives many other budget components such as production, inventory, and cost of goods sold budgets.

Answer:

B. It is developed using an estimate of the physical quantity of goods or services to be sold, multiplied by the expected selling price per unit. D. It is the key to the overall operating budget.