2.2.1sales Forcasting

Question 1

What does a sales forecast involve

Answer 1

Involves predicting future sales volume / value to help make informed key decisions

Question 2

How des SF help a business avoid cash flow problems

Answer 2

Accurately planning can help businesses manage production staff and financing needs effectively and possibly avoid unforeseen cash flow problems

Question 3

How does SF help with production capacity

Answer 3

Can use to establish wether they need to increase or decrease production
Will help to see if they have enough production capacity to deal with expected demand
Business may need to buy / rent new premises if huge increase in SF