360 Test 2 part 2

A sales forecast method based on key managers' best estimates of sales in a given planning horizon refers to a sales force composite.

Answer explanation

FALSE

Budgeting offers the sales department all the following advantages except -ensuring a systematic approach to allocating resources -creating awareness of the necessity to coordinate selling -establishing standards for measuring the performance of the sales organization

Answer explanation

none of the above because all are advantages

Bernie Skolnik is trying to decide what forecasting method to use. He is especially concerned that the forecasting method be (a) understood by top management and (B) allow for possible changing future market conditions. Mr. Skolnik would be most interested in which of the following criteria for evaluating forecasting methods?

Answer explanation

comprehensibility and accuracy

________ is a quantitive forecast whereby the dependent variable is sales, and the independent variable is time.

Managers evaluate and adjust each salesperson's estimate before combining them to form an overall forecast. All of the following are disadvantages of the sales force composite approach except -it allows estimates to be prepared by products, customers, and territories so that a final, detailed forecast is readily available -it allows salespeople to deliberately underestimate their forecasts so that they can reach their quotas more easily -it yields forecasts based on present rather than future conditions because salespeople often lack the perspective for future planning -it requires a considerable amount of sales force time that otherwise could be spent in the field attracting new customers

Answer explanation

it allows estimates to be prepared by products, customers, and territories so that a final, detailed forecast is readily available

Subjective forecasts based on knowledgeable people's opinions instead of being analytically derived refer to

Answer explanation

non-quantitative forecasting techniques

A type of moving average that represents the weighted sum of all past numbers in a time series, placing the heaviest weight on the most recent data, is known as

Answer explanation

exponential smoothing

The most widely used approach to estimating industrial demand uses information provided by

Answer explanation

The Standard Industrial Classification Manual

Quantitive sales forecasting techniques include all of the following except

Answer explanation

the Delphi method

Using historical data to predict future sales is called time-series technique

Answer explanation

TRUE