The document discusses budgeting and evaluation. It defines a budget as a financial plan for a period, often a year, including planned sales, resources, costs, expenses, and cash flows. Budgeting ensures spending does not exceed income and acts as a control mechanism. Evaluation examines a program by analyzing activities, characteristics, and outcomes to improve effectiveness and inform decisions. Evaluation measures actual performance against objectives, identifies weaknesses, and provides appropriate actions for improvement. It plays an important role in sales management by setting objectives, determining compensation, informing training, and motivating salespeople.

1. BUDGETING AND
EVALUATION
MONDIDO, JUSTINE LYKA
FATALLA, KENNETH
SABADO, JEFFMAR
GAGATE, JHERALD
TAGUIG CITY UNIVERSITY
3RD YEAR BPA – A31

2. • A budget is a financial plan for a
defined period, often one year. It may
also include planned sales volumes
and revenues, resource quantities,
costs and expenses, assets, liabilities,
and cash flows.
WHAT
IS
Source: https://slideplayer.com/slide/4910181/

3. PURPOSE OF BUDGET
An organization needs to budget in order
to:
• Ensure the expenditure does not
exceed the planned income (limit the
spending).
• A means of control.
Source: https://slideplayer.com/slide/4910181/

4. FORECAST VS BUDGETING
Consequences of an incorrect medium-term
forecast is immediate:
• If forecast is pessimistic, co achieves more
sales than forecast >lose potential sales because
of unprepared and insufficient working finance.
• If the forecast is optimistic, sales revenue
does not match anticipated,> the revenue
problem arises, co may need a tending to fund
its short-term working capital.
Source: https://slideplayer.com/slide/4910181/

5. EXPENSES VS INCOME
• Income: Sales Revenue
• Expenses: Costs
• Selling expenses: sales personnel
salaries, commission, sales
expenses,training
• Advertising budget: TV promotion,
coupon
• Administrative budget: Expenditure of
running the sales office, sales
administration and support staff.
Source: https://slideplayer.com/slide/4910181/

6. TYPES OF BUDGETING
• Affordable method
base the budget on funds available after
all other expenses have been paid. I.e
leftover funds to advertising.
• Return on investment method
Assume that advertising is a tangible
item and long term investment that extends
beyond the budget period. Discount the
return on these expenditures.
Source: https://slideplayer.com/slide/4910181/

7. • Incremental
Base future expenditures on the present
budget. Assume the last unit of money spent
on advertising should bring in an equal unit
of revenue.
• Percentage of sales
Tie promotion to a % of last year’s sales
revenue the more the sales, the more the
promotion.
Source: https://slideplayer.com/slide/4910181/

8. WHAT
IS
EVALUATIO
N?

9. • Evaluation is a process that critically
examines a program. It involves
collecting and analyzing information
about a program’s activities,
characteristics, and outcomes. Its
purpose is to make judgments about a
program, to improve its effectiveness,
and/or to inform programming
decisions.
-(Patton, 1987)
Source: https://meera.snre.umich.edu/evaluation-what-it-and-why-do-it#wha

11. PURPOSE OF EVALUATION
• To attain company objectives by
measuring actual performance against
objectives.
• Weakness of a sales person can be
identified
• Appropriate action can be taken to
improve performance
Source: https://slideplayer.com/slide/4910181/

12. Improve salesperson’s motivation and
skills
• (1) Salesperson is informed what is
the company’s expectation and what is
considered good performance
• (2) increase confidence and
motivation if the good performance is
recognized by the evaluation.
Source: https://slideplayer.com/slide/4910181/

13. • Evaluation is important in an
effective training program.
• Evaluation information decides
compensation plan.
Source: https://slideplayer.com/slide/4910181/

14. THE ROLE OF EVALUATION IN SALES
MANAGEMENT
SALESFORCE
EVALUATION
Attainment &
Setting Objective
Compensation
Training
Motivation
Source: https://slideplayer.com/slide/4910181/

15. Budgeting and Evaluation
Algyrho Bookkeeping
Published by Irene McBride
Over 5 years ago
https://slideplayer.com/slide/4910181/