Sales Forecasts

Question 1

What’s a sales forecast?

Answer 1

An estimate to the amount of products sold in a future period

Question 2

Benefit of Sales Forecasts? (4)

Answer 2

1. Able to predict amounts of sales volume
2. Allows business to not over or understock
3. To not produce waste and reduce outflows
4. Link to Liquidity

Question 3

Drawback of Sales Forecasts? (3)

Answer 3

1. Requires Market Research to increase demand
2. Reliable from a large sample size and need specialist researchers
3. Link to Costs + Profit