Sales Forecatsing Flashcards
1
Q
Sales forecasting
A
This is the process of estimating the future sales of a business
2
Q
Purpose of sales forecasting
A
- allows business to device if needs to increase capacity/ workers
- allows business to work cash flow forecast
- helps guide when start promotional activity
3
Q
Factors affecting sales forecasting
A
- consumer trends
- economic variable
- actions of competitors
4
Q
Difficulties of SF
A
- dynamic markets forecasts constantly need adjusting therefore inaccurate
- start up businesses no past sales data
- income and price elastic demand - small changes to markets
5
Q
Limitations of QSF
A
- past performance no guarantee of future
- time consuming / complex
6
Q
How is SF derived
A
Correlation, extrapolation - extending line
7
Q
QSF useful
A
Helps to create cash flow forecasts
- create revenue budgets
- helps stock requirement - operations plan
- create HR plan
