Analysis of trends and extrapolation

HideShow resource information
What is sales forecasting?
Assumes past trends and predicts future trends
1 of 8
Examples of sales forecasting
Moving averages, trend analysis, extrapolation and correlation
2 of 8
Cyclical fluctuations
Looks at tracking economic factors e.g. boom and recession
3 of 8
Seasonal fluctuations
Changes in season affect markets
4 of 8
Random fluctuations
Trends occur for no reason e.g. toys, fashion and social
5 of 8
Limitations of analysis of trends and extrapolation
Past does not accurately represent the future, correlation changes over time & external influences change trends
6 of 8
Methods of forecasting
Business oracle, brainstorming & hunches of individuals
7 of 8
Consequences of incorrect forecasting
Inaccurate production (too much/too little), lose customers & wasted products (high waste cost)
8 of 8

Other cards in this set

Card 2

Front

Examples of sales forecasting

Back

Moving averages, trend analysis, extrapolation and correlation

Card 3

Front

Cyclical fluctuations

Back

Preview of the front of card 3

Card 4

Front

Seasonal fluctuations

Back

Preview of the front of card 4

Card 5

Front

Random fluctuations

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »