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Why would the cash collections budget be different than the sales budget?

Why would the cash collections budget be different than the sales budget?

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Yes, The cash collection budget is very much different from sales Budget. Sales Budget is basically the projected sales quantity and value that the corporation is going to make in the comming quarters or the years. Wheres as the cash collection budget tells about how much cash it will be able to collect from cash sales and account receivable for the comming quarter or years. Sales Budget help us to decide the production quantity and to calculate the per unit cost for the prducts in order to allocate the fixed costs, where as cash budget helps us to mage the finances and financing needs.

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