In the context of budgeting, what does 'expected revenues' refer to?

'Expected revenues' refers to the estimated income that a business anticipates generating from all its sources during a specific period, such as a fiscal year or quarter. This figure is crucial for budget planning because it informs various financial decisions, such as how much to allocate for expenses, investments, or savings. It encompasses projections based on market analysis, historical sales data, and comprehensive assessments of customer demand.

Looked at in context, the other options do not fit the definition of 'expected revenues' as closely. Actual sales figures from the previous year represent past performance rather than forward-looking estimates. Potential future investment returns relate to gains from investments rather than direct income from operational activities. Costs associated with marketing campaigns pertain to expenditures rather than revenues generated. Understanding the concept of expected revenues is essential for effective financial management and strategic planning within a business.