The sales budget shows the Quantities of each product that
the company plans to sell and the intended selling price. It provides the
predictions of total revenue from which cash receipts from customers will be
estimated, it also supplies the basic data for constructing budget for
production costs, and for selling, distribution and administrative expenses. The
sales budget is therefore the foundation of all other budgets, all expenditure
is ultimately dependent on the volume of sales.
The sales volume is based on working of marketing employees. If employment is
increased for advertisement of the products, the volume of sales increases
ultimately.
Volume of Production
The advancement of economy is based on long run industries. Budget of production
should prepare for long time. Volume of production must be increased. If rate of
employment increases in the industries , living standard raises of the people.
Economy of the state gets develop.
The production department of a company must to know long term benefits of the
natural resources.
Long term benefits of natural resources in the light of Holy Quran.
Indeed, in the creation of the heavens and the earth and the alternation of the
night and the day are signs for those of understanding. (Surah al Imran 190).
Who remember Allah while standing or sitting or [lying] on their sides and give
thought to the creation of the heavens and the earth, [saying], "Our Lord, You
did not create this aimlessly; exalted are You [above such a thing]; then
protect us from the punishment of the Fire. (Surah al Imran 191 ).