Question

1. A good starting point for a forecast is

next year's sales

last year's sales

current year's sales

average sales over a five-year period

2. Which departments do forecasts affect?

Marketing

R&D

All of these

Production

3. Besides last year's sales, another factor to consider in forecasting is

whether a competitor stocked out

your training in statistics

R&D costs

how your product stacks up against products competing for different customers

4. Calculating the worst-case scenario is designed to help reduce the chance that your company will stock out.

True

False 5. According to the article “How Clear is Your Crystal Ball?”, last year's sales are a bad starting point for this year's forecasts.

Answer 1

1.Average sales over a period of 5 year.This would include the current year as well as last year sales and would help predicting the future sales more accurately.

2.All of these.

If the forecast predicts that in the the sales volume will be high in the coming period,the expenditure of all these department would rise and vice versa.

3.how your product stacks up against products competing for different customers.

This would help in analyzing the future sales.

4.Worst case scenario are used to-
used by the Finance department to predict profits, variable costs and contribution margin.

-used by Production to determine how many units to produce.

Answer-True.