ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which statement best describes the information that the finance function typically needs from the sales function for budgeting purposes?
Finance needs forecast sales volumes and prices from the sales function, because the sales budget is usually the starting point for the other budgets and for cash flow forecasts. The other items concern HR, operations or strategy and do not drive budget figures.
- AForecast sales volumes and pricesCorrect
- BDetails of employee grievance procedures
- CProduction machine maintenance logs
- DThe company's mission statement wording
Explanation
The sales budget is normally the starting point for other budgets, so finance needs forecast volumes and selling prices from sales. Grievance procedures, maintenance logs and mission wording do not feed the budgeting process directly.
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