ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following factors are not important to consider in making a sales forecast?

A	Past sales volume
B	Distribution costs involved
C	Conditions within the industry
D	Plant capacity
E	None of the above

Explanation:

Detailed explanation-1: –Answer: c. The estimates from salespersons are not a method that can reasonably be used to forecast sales. One reason is that salespersons overestimate sales forecasts. Sales forecast methods are historical data through trends, flexible budgets, and others.

Detailed explanation-2: -Option (b) Critical path method is not the method of demand forecasting. Based on the analysis and studies done on the data predicting what will be customers nature in future, is the concept behind demand forecasting.

Detailed explanation-3: -James W. Redfield has summarized the essential elements as follows: Developing the ground work: Estimating future business: Comparing actual with estimated results: Refining the Forecast Process:

There is 1 question to complete.