KT19: 2.2.1 sales forecasting, 2.2.2 sales revenue and costs

Question 1

contingency plans

Answer 1

plans held in reserve in case things go wrong

Question 2

real incomes

Answer 2

changes in household incomes after allowing for a change in prices

Question 3

sales forecast

Answer 3

a method of predicting future sales using statistical methods

Question 4

trend

Answer 4

the general path that a series of values follows over time, disregarding variations or random fluctuations

Question 5

fixed costs

Answer 5

those that do not change as the number of sales change

Question 6

piece-rate labour

Answer 6

paying workers per item they make- that is, without regular pay

Question 7

sales revenue

Answer 7

the number of units sold in a time period multiplied by the average selling price of those units

Question 8

sales volume

Answer 8

the number of units sold in a time period

Question 9

total costs

Answer 9

all costs of producing a specific output level

Question 10

total variable costs

Answer 10

all the variable costs of producing a specific output level - that is variable costs per unit multiplied by number of units sold

Question 11

variable costs

Answer 11

those that change in line with the amount of business