Most sales forecasts are based on past sales performances as well as

• expected market conditions.
• the number of local competitors.
• managers’ hopes for the future.
• government regulations.

Which of the following is a potential benefit of sales forecasting:

• Decreased revenue
• Increased efficiency
• Higher costs
• New product ideas

Which type of sales forecasting is based on expert opinion and personal experience?

• Long range
• Quantitative
• Qualitative
• Short range

Which type of sales forecasting is based on the analysis of hard facts or numerical data?

• Long range
• Quantitative
• Qualitative
• Short range

Which of the following is an example of internal information used for quantitative sales forecasting:

• Mass media stories
• Government reports
• Past sales records
• Trade magazines

Which of the following is an example of external information used for quantitative sales forecasting:

• Customer surveys
• Accounting records
• Financial statements
• Industry publication

Which of the following is an advantage of quantitative sales forecasting:

• It’s reliable.
• It provides a “human touch.”
• It’s cheap.
• It’s perfect for new businesses.

Which of the following is an internal factor that may affect a business’s sales forecast:

• Economic conditions
• Competition
• Length of time to complete sales
• Season/Weather

How would an inventory shortage likely affect a business’s sales forecast?

• Predicted sales would be lower.
• Predicted sales would be slightly higher
• Predicted sales would stay the same.
• Predicted sales would drop to zero.

Which of the following is an external factor that may affect a business’s sales forecast:

• Promotion
• Distribution
• Price
• Political conditions