Sales forecasting and profit Flashcards
1
Q
Define SALES FORECASTS
A
A sales forecast is a prediction of future sales volume and trends using past data. Sales volume is the amount of units or the revenue made through selling.
2
Q
Why do businesses forecast sales?
A
- Plan cash flow
- Plan workforce needed
- Stock management
- Plan budgets
- Plan marketing activities
3
Q
What factors influence sale forecasts?
A
- Consumer trends
- Competitors
- External shocks
4
Q
What are difficulties faces when setting sales forecasts?
A
- Cannot predict the future accurately
- Changes in the external environment are outside the business’ control and are hard to predict
- In dynamic markets, the future is particularly hard to predict
