- Created by: Roscolad231
- Created on: 03-05-17 18:59
- Sales forecasting is a prediction of all the sales a business will make in a year. The accuracy of these forecasts depends on the reliablitlity of the data you are using which could be obtained using in anumber of market research techniques.
Purpose of a sales forecast
- One purpose of sales forecasts is to ensure that the cash flow forecast is accurate enough, this is because the cash flow forecast will rely on the sales forecast in order to be precise on how much cash the business will make or lose in a year.
- Sales forecasts can also be used in order to influcence decision making for example if a bus service business is predicting a high sales forecast due to higher demand then the bus service may use the forecast as an excuse to hire more staff and assets e.g. buses.
- In conclusion it is mostly used when trying to…