Chapter 2

Revenue budgets

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Forecasting methods
• Qualitative methods: rely on attitudes, beliefs,
feelings and experience.
 Jury of executive opinion
 Sales force composite
 Delphi technique
 Market research

• Quantitative methods: more objective, use

mathematical models.
 Time serious models
 Causal models

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PPTs t/a Budgeting 3e by Alan Banks
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Factors affecting revenue budgets
• Past sales levels for business and entire industry.
• General economic trends.
• Economic trends in the business’s industry.
• Climatic changes affecting industry.
• Political and legal events.
• Intended pricing policy.
• Planned advertising.
• Expected actions of competitors.
• Market research studies.

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Types of revenue budgets

• Sales by product.

• Sales by product and period.

• Sales by area and period.

• Sales by product, area and period.

• Fees income by type of service.

• Sales and fees income by period.

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Sale by product
Sales budget for the year ending June 30

Type of biscuit Sales Sales Sales

volume price $
kg $

Sweet Hearts
Cherry Surprises
Chocolate Supremes

Almond Delights
Total sales $

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Sales by product and period
Sales budget for the quarter ending
31 March
Jan Feb March Total
Hot Dogs
Sales volume
Selling price $
Sales $
Pies
Sales volume
Selling price $
Sales $

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 Fees income budget for the quarter ended 30 September

July Aug Sept Total

Normal consultations
No. of patients
Fee per visit $
Fees income $
Home visits
No. of patients
Fee per visit $
Fees income
Total fees income $

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