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( Sales- variable expenses) ÷ operating profit. Operating profit ÷( fixed expenses- variable expenses). Sales ÷( fixed expenses- operating profit). Fixed costs ÷ Total contribution margin.

Question 9. Question: Sales forecasts are the first step in the budgeting process of a

merchandising firm because: Student Answer: The revenue data are easiest to generate. Sales information is precise in amount. Sales personnel have the quickest access to data. Sales forecasts are the most objective of all budgeted activities. Almost all activities of a firm emanate from( i. e., are linked to) estimated sales demand. UNIT 3 QUIZ

Question 10. Question: All of the following represent alternative approaches to the

traditional budget-preparation process except which one? Student Answer:

( Sales- variable expenses) ÷ operating profit. Operating profit ÷( fixed expenses- variable expenses). Sales ÷( fixed expenses- operating profit). Fixed costs ÷ Total contribution margin.

Question 9. Question: Sales forecasts are the first step in the budgeting process of a

merchandising firm because: Student Answer: The revenue data are easiest to generate. Sales information is precise in amount. Sales personnel have the quickest access to data. Sales forecasts are the most objective of all budgeted activities. Almost all activities of a firm emanate from( i. e., are linked to) estimated sales demand. UNIT 3 QUIZ

Question 10. Question: All of the following represent alternative approaches to the

traditional budget-preparation process except which one? Student Answer: