5 - Sales forecasting

Question 1

sales forecasting

Answer 1

predicting future sales volume, informs business decisions

Question 2

how may sales forecasts be carried out

Answer 2

market research (market reports ect)
back data (eg time series analysis)

Question 3

ecenomic variables

Answer 3

combine to influence the demand, thus sales in the market

Question 4

examples of ecenomic variables

Answer 4

inflation rate
unemployment
exchange rates
ecenomic growth

Question 5

consumer trends

Answer 5

must be taken into account to for this in order to meet customer needs ect

Question 6

examples of consumer trends

Answer 6

seasonal trends
fashions
long term brands (trend towards solar power ect)

Question 7

problems with sales forecasting

Answer 7

fluctuations in economic variables
volatile customer tastes and preferences
volatile markets - some markets are more volatile and unpredictable
quality of teh data used may vary

Question 8

revenue

Answer 8

the value of sales made during a trading period

Question 9

sales revenue =

Answer 9

prcie x quatity sold

Question 10

variable costs

Answer 10

those that change as a result of output or sales, for example materials

Question 11

fixed cost

Answer 11

those that do not change with the level of output or sales - rent

Question 12

average cost =

Answer 12

total cost/output