Functional Budgets

  • Ernest Laidler
Part of the Institute of Cost and Management Accountants book series


A sales forecast usually precedes the preparation of the sales budget, and is a prediction in the light of circumstances expected to prevail. It differs from a budget in that it does not take account of special action which may be taken by management to influence the course of events. All reasonable sources of information concerning the potential market for the company’s products or services are used. These include —
  1. (i)

    actual sales during a recent completed period with particular attention to significant trends

  2. (ii)

    information from area managers and representatives concerning recent or future changes in local conditions, the impact of competition, etc

  3. (iii)

    market research reports (home and export)

  4. (iv)

    announcements of government legislation, e.g. changes in VAT or hire-purchase regulations

  5. (v)

    economic surveys, e.g. future prospects as to the level of employment, the availability of funds and business conditions generally.



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Copyright information

© Ernest Laidler 1976

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  • Ernest Laidler

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