2.2 FINACIAL PLANNING

Question 1

2.2.1 Sales Forecasting
What is sales forecasting?

Answer 1

The process of predicting future sales
Using time series data “previous data”
Used in other areas of business planning

Question 2

2.2.1 Sales Forecasting
What is the purpose of sales forecasting?

Answer 2

To enable better financial planning, budget allocation, and strategic decision-making

Question 3

2.2.1 Sales Forecasting
How does consumer trends effect sales forecasting?

Answer 3

A sales forecast may take into account consumer trends
Documents like mintel can help a business to identify an up coming trend
Fashion shows and trade fairs are also ways that a business can research what might be new popular products