Question

What are the most important factors you need to take account when making sales forecast?

A)Microeconomic and market forecast, tax, dividend policy

B)Macroeconomic and industry forecast, interest rates

C)Macroeconomic and industry forecast, tax rates

Answer 1

Option B is correct.

Macroeconomic factors should be considered like GDP growth, unemployment in the economy, inflation rates, disposable income etc which are the important while sales forecasting.

Industry performance depends on the cyclicality of the economic growth. For example, automobile industry is cycle, customers buy when economy is in godd shape. But the industries like food, Pharma which are essential doesn't impact negatively depsite economic slow down. Based on this, sales are need to be forecasted

Interest rates dictates the consumption pattern in the economy.if the interest rates are low, consumption will be higher and sales to grow higher. On the other hand, if the interest rates are higher, consumption will be lower and subsequent lower sales