Sales forecasting

What does the price elasticity of demand measure?

• The sensitivity of demand to a change in price

• The sensitivity of demand to a change in income

• The relationship between two variables

• The difference between actual and predicted outcomes

What is the formula for calculating income elasticity of demand?

• % change in quantity demanded/% change in price

• % change in quantity demanded/% change in income

• % change in income/% change in quantity demanded

• % change in price/% change in quantity demanded

What is sales forecasting based on?

• Historical sales data, market surveys, and trends

• The relationship between two variables

• The difference between actual and predicted outcomes

• The sensitivity of demand to a change in price

What does extrapolation predict?

• Future trends based on past data

• The relationship between two variables

• The sensitivity of demand to a change in income

• The difference between actual and predicted outcomes

What does correlation measure?

• The relationship between two variables

• The sensitivity of demand to a change in price

• The difference between actual and predicted outcomes

• Future trends based on past data

What is an example of time-series analysis?

• 3 point moving average

• % change in quantity demanded/% change in price

• The Delphi method

• Budget variance

What is the Delphi method used for?

• Sales forecasting

• Budgeting

• Variance analysis

• Correlation

What is a budget?

• A financial plan for the future

• The difference between actual and predicted outcomes

• Checking actual outcomes against predicted outcomes

• A statement of the firm’s assets, liabilities, and owner’s funds

What is budget variance?

• The difference between the actual outcome and the predicted outcome

• The sensitivity of demand to a change in price

• The relationship between two variables

• A financial plan for the future

What does variance analysis check?

• Actual outcomes against predicted outcomes

• The sensitivity of demand to a change in price

• The relationship between two variables

• Future trends based on past data