4.3 Sales Forecasting Flashcards
1
Q
sales forecasting
A
predicting the sales volume for a business/product in the future
2
Q
Benefits of sales forecasting
A
helps production numbers
* less likely to have unsold stock
hr planning
* how many employees are needed
can help with loan applications
* predictions may help persuade banks
cash flow management
* ensure enough cash flow is on hand
3
Q
limitations of sales forecasting
A
just a prediction
* things may change in the future
external factors may change everything
* e.g. recession
some industries are changing very quickly
new businesses don’t have past sales numbers
4
Q
ASK ABOUT MOVING AVERAGES
A
5
Q
A
