Worksheets5.02 Futurecast Lap Test
Total questions: 20
Worksheet time: 15mins
Name
Class
Date
1.
Most sales forecasts are based on past sales performances as well as
a)
expected market conditions.
b)
the number of local competitors.
c)
managers’ hopes for the future.
d)
government regulations.
2.
Which of the following is a potential benefit of sales forecasting:
a)
Decreased revenue
b)
Increased efficiency
c)
Higher costs
d)
New product ideas
3.
Which type of sales forecasting is based on expert opinion and personal experience?
a)
Long range
b)
Quantitative
c)
Qualitative
d)
Short range
4.
Which type of sales forecasting is based on the analysis of hard facts or numerical data?
a)
Long range
b)
Quantitative
c)
Qualitative
d)
Short range
5.
Which of the following is an example of internal information used for quantitative
sales forecasting:
a)
Mass media stories
b)
Government reports
c)
Past sales records
d)
Trade magazines
6.
Which of the following is an example of external information used for quantitative
sales forecasting:
a)
Customer surveys
b)
Accounting records
c)
Financial statements
d)
Industry publication
7.
Which of the following is an advantage of quantitative sales forecasting:
a)
It’s reliable.
b)
It provides a “human touch.”
c)
It’s cheap.
d)
It’s perfect for new businesses.
8.
Which of the following is an internal factor that may affect a business’s sales forecast:
a)
Economic conditions
b)
Competition
c)
Length of time to complete sales
d)
Season/Weather
9.
How would an inventory shortage likely affect a business’s sales forecast?
a)
Predicted sales would be lower.
b)
Predicted sales would be slightly higher
c)
Predicted sales would stay the same.
d)
Predicted sales would drop to zero.
10.
Which of the following is an external factor that may affect a business’s sales forecast:
a)
Promotion
b)
Distribution
c)
Price
d)
Political conditions
11.
Which of the following is a true statement regarding how economic conditions may affect a business’s sales forecast:
a)
Economic conditions have very little impact on sales forecasts.
b)
A poor economy will decrease sales for all types of businesses.
c)
A strong economy will increase sales for all types of businesses.
d)
A poor economy will hurt sales for some businesses but will help others.
12.
A business might create a sales forecast to predict future sales for
a)
discontinued products.
b)
a specific market segment.
c)
product ideas.
d)
a competitor.
13.
13.The further into the future a sales forecast reaches, the more __________ it is.
a)
detailed
b)
useful
c)
inaccurate
d)
inexpensive
14.
Short-range sales forecasts are used to
a)
aid in day-to-day decision-making.
b)
plan yearly budgets.
c)
determine whether or not to make capital expenditures.
d)
make strategic plans.
15.
Intermediate-range sales forecasts are used to
a)
plan yearly budgets.
b)
aid in scheduling.
c)
make strategic plans.
d)
aid in staffing.
16.
Long-range sales forecasts are used to
a)
aid in inventory planning.
b)
plan yearly budgets.
c)
determine whether or not to make capital expenditures
d)
make strategic plans.
17.
For new businesses, sales forecasts are especially vital for
a)
paying taxes.
b)
determining sales quotas.
c)
obtaining loans and investments.
d)
monitoring costs.
18.
Which of the following is a use for sales forecasting in business planning:
a)
Coming up with new product ideas
b)
Comparing sales to industry norms
c)
Negotiating contracts with suppliers
d)
Designing advertisements
19.
How might sales forecasting aid a business in setting prices?
a)
Sales forecasts tell businesses exactly what to charge for each product.
b)
If predicted sales are high, the business might consider lowering prices.
c)
If predicted sales are low, the business might consider lowering prices.
d)
The business might decide to raise prices among certain market segments.
20.
Which of the following is an excuse a business might make for not creating sales forecasts:
a)
There are too many benefits.
b)
The results are too accurate to be useful.
c)
There’s too much information on han
d)
It takes too much time.
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