The first step in preparing the sales budget is to a. prepare a sales forecast. b. review the production budget carefully. c. assess the desired ending inventory of finished goods. d. talk with past customers. e. increase sales beyond the forecast level.

The first step in the preparation of the sales budget is to prepare a sales forecast.

Explanation:

A sales budget is used to show the estimate of the amount of goods and services that a firm proposes to sell at a particular period and is usually made for the following year.

The first step in the preparation of the sales budget is to prepare a sales forecast.

A company can get the data from different sources when the sales budget is prepared for the following year. The sales forecast are gotten from the sales in previous years, estimates which are provided by branch offices.

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