Managerial Accounting Essay Example | Topics and Well Written Essays - 500 words

Managerial Accounting - Essay Example Sales projections would be done in according to the consumers and population and whether it is liked by them or not. It will also look at competition and if mushroom brands have entered the market or not. A marketing manager will create surveys and shoot sales by promotion and sampling. This way, sales projections are likely to increase but may not necessarily increase actual sales due to some discrepancies in research. Underestimating sales projections may result in a mismatch for the profit goal. (Williams et al., 2005). A lot of the components of budgeting including sales projection accumulate to make up the master budget. When the master budget is understated, it might not meet the profit margin for the year. Therefore, other plans can halt as a result. If accurate figures are given and profits are likely to occur, expansion projects or other promotions could be thought of and money can be utilized. Any other resource such as labour needed to help in creating sales should be pre planned and a correct sales forecast would reduce any chances of shortages and mishaps. If sales are understated, operating, manufacturing, and other following costs will also be understated accordingly. Moreover, the goal should be to reduce all inefficiencies and add value throughout the value chain model.