Objective A 5.02

Front

What is the primary purpose of a sales forecast?

Back

To predict a company’s future sales based on past performances and expected market conditions

Front

Which of the following is a benefit of creating sales forecasts?
Decreasing customer satisfaction,
Increasing revenue,
Increasing production costs,
Decreasing product quality

Back

Increasing revenue

Front

What is qualitative sales forecasting based on?

Back

Expert opinion and personal experience

Front

Which of the following is a disadvantage of qualitative forecasting? It is expensive, It lacks a high level of accuracy due to potential bias, It requires a lot of numerical data, It is time-consuming

Back

It lacks a high level of accuracy due to potential bias

Front

Quantitative sales forecasting relies on which of the following? Personal opinions, Employee interviews, Customer feedback

Back

Hard facts or numerical data

Front

Which of the following is an internal factor that can affect sales forecasts? Economic conditions, Political conditions, Labor disputes, Season/Weather

Back

Labor disputes

Front

What is an example of an external factor that can influence sales forecasts?

Back

Economic conditions

Front

Why might a new business rely more heavily on qualitative forecasting methods?

Back

It lacks past sales records or financial statements

Front

Which of the following is a source of internal information for quantitative forecasting? Government reports, Industry periodicals, Past sales records, Mass media

Back

Past sales records

Front

What is a potential disadvantage of quantitative forecasting?

Back

It can be costly