Final answer:
The revenues budget identifies the expected level of sales for a company, used in financial planning. Total revenue is derived from the sales of products or services, calculated by multiplying the price by the quantity sold.
Step-by-step explanation:
The revenues budget identifies the expected level of sales for the company. This budget is crucial as it projects future sales revenue, which is essential for making informed decisions on various aspects of running the business, such as inventory management, staffing, and marketing strategies. Total revenue is the income a firm generates by selling its products or services, and it is calculated using the formula: Total Revenue = Price x Quantity.
Total revenue forecasts play a critical role in the financial planning of any organization, and for all levels of government-federal, state, and local-to create budgets reflecting expected income from taxes and other sources.