What type of budget does Jon need that includes monthly forecasts?

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

The correct answer is a sales budget, as it is specifically designed to outline anticipated sales revenue over a set period, typically broken down monthly. A sales budget helps businesses predict future sales, set sales goals, and plan for inventory needs, staffing, and resource allocation.

This planning tool allows Jon to create monthly forecasts based on historical data, market analysis, and sales trends, which are crucial for effective business management. By having a clear view of expected sales, Jon can make informed decisions about production levels and marketing strategies, ensuring that the business meets its financial goals and operational needs.

The other types of budgets, while important in their own right, do not focus directly on sales forecasting. The revenue budget is broader and encompasses all income streams, the operational budget relates to the costs and expenses associated with daily operations, and the capital budget is concerned with long-term investments and asset purchases. Therefore, a sales budget is the most relevant choice for monthly sales forecasting.

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