IB Sales forecast

What is the primary purpose of sales forecasting?

• To determine past sales performance
• To predict future sales revenue
• To analyze competitor pricing
• To calculate tax liabilities

Which business function relies heavily on sales forecasts for planning?

• Human Resources
• Production
• Finance (cash flow)
• All of the above

Sales forecasting is most useful for:

• Long-term predictions (5+ years)
• Short-to-medium term planning
• Analyzing historical data only
• Government policy-making

The key assumption in sales forecasting is:

• Future sales will match past trends
• Competitors' actions are predictable
• Economic conditions remain static
• Consumer preferences never change

Which technique uses past sales data to predict future trends?

• SWOT analysis
• Extrapolation
• Break-even analysis
• Market segmentation

A major limitation of sales forecasting is:

• It cannot account for qualitative factors
• It guarantees 100% accuracy
• It only works for small businesses
• It ignores seasonal variations

Seasonal variations refer to:

• Random economic shocks
• Predictable fluctuations (e.g., holidays)
• Long-term business cycles
• Changes in management

Which product would MOST likely show seasonal sales variations?

• School uniforms
• Mobile phones
• Banking services
• Industrial machinery

Cyclical variations are linked to:

• The business cycle (booms/recessions)
• Annual holiday seasons
• Unpredictable events like disasters
• Short-term stock fluctuations

Random variations could be caused by:

• A pandemic outbreak
• Christmas sales spikes
• Quarterly economic growth
• Regular product launches