MANAGEMENT

Detailed explanation-1: -Sales forecast is the projection of achievable sales revenue, based on historical sales data, analysis of market surveys and trends and salesperson’s estimates. Sales forecast also called sales budget, forms the basis of a business plan, since the level of sales revenue affects practically every aspect of a business.

Detailed explanation-2: -A sales forecast is a prediction of future sales revenue. Sales forecasts are usually based on historical data, industry trends, and the status of the current sales pipeline. Businesses use the sales forecast to estimate weekly, monthly, quarterly, and annual sales totals.

Detailed explanation-3: -A sales forecast is a prediction based on past sales performance and an analysis of expected market conditions.

Detailed explanation-4: -Concept: The historical forecasting method works by taking the previous sales data for a certain period and assuming that your sales will be better. The problem with the historical forecasting method is it doesn’t put into account the dynamic market changes.

Detailed explanation-5: -To use historical forecasting, companies need past data to set a benchmark for the number of sales that can be predicted for a given quarter. Companies that have a year’s worth of data can use it to establish historical growth. Historical growth is the percentage of growth revenue experiences from one year to the next.