Which of the following is NOT included on the sales budget?

• A. Total expected sales revenue
• B. Expected sales volume
• C. Sales returns and allowances
• D. Expected selling price per unit

Answer: (C)

Verified step by step guidance

1. Understand the purpose of a sales budget: A sales budget is a financial plan that estimates the expected sales revenue for a specific period. It includes key components such as expected sales volume and selling price per unit.
2. Review the components typically included in a sales budget: These components are total expected sales revenue, expected sales volume, and expected selling price per unit. These elements help businesses forecast their income and plan operations accordingly.
3. Clarify the concept of sales returns and allowances: Sales returns and allowances refer to reductions in revenue due to returned goods or allowances granted to customers. These are typically recorded separately in the accounting process and are not part of the sales budget itself.
4. Identify the correct answer: Since sales returns and allowances are not included in the sales budget, they are the correct answer to the question.
5. Summarize the reasoning: The sales budget focuses on projecting revenue based on expected sales volume and selling price per unit, while sales returns and allowances are adjustments to revenue recorded elsewhere in the accounting process.