Sales forecasting

Sales forecasting is a

• decision making tool used to calculate sales data

• management tool used to extrapolate trends in certain variables

• qualitative management decision making tool

• statistical tool used to predict a firm's sales level

Which of the following is not an example of time series data？

• Budgetary variation

• Cyclical variation

• Random variation

• Seasonal variation

Benefits of sales forecasting do not include the direct ability to

• improve productive efficiency

• improve stock control

• improve the management of a firm's cash flows

• increase market share

Which of the following products is least likely to face seasonal fluctuations in demand?

• banking service

• IB examiners and moderators

• school bus service

• umbrellas and raincoats

Which of the following statements is not a limitation of sales forecasting?

• forecasts are rarely perfect

• forecasts become less accurate the longer the time period under consideration

• the data make it difficult to extrapolate sales trends

• they are more accurate for predicting sales of single items rather than for a group of items