Purpose of Sales Budget:-


1.         Planning :-

The company formulates marketing and sales objectives; the budget determines how these objectives will be met through a detailed breakdown of the sales budget among products, territories and customers.

2.         Co-ordination:-

The budget establishes what the cost of various heads be thereby maintaining a desired relationship between expenditure and revenues. The budget enables sales executives to coordinate expenses with sales. It also restricts the sales executives form spending more that their share of eth funds helping to prevent expenses from getting out of control.

3.         Evaluation:-

Sales department budgets become tools to evaluate the department’s performance. By meeting the sales & cost goals set forth in the budget, a sales manager may prove himself to be a successful executive.

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